AREVA in 2007, Growth and Profitability

AREVA in 2007, growth and proﬁ tability

AREVA 33, rue La Fayette – 75009 Paris – France Tel.: +33 1 34 96 00 00 – Fax: +33 1 34 96 00 01 www.areva.com

Energy is our future, don’t waste it! ACTIVITY AND SUSTAINABLE DEVELOPMENT REPORT If you only have a moment to devote to this report, read this. Our energies have a future. A future without CO 2

OUR MISSION no.1 worldwide Enable everyone to have access to ever cleaner, safer and more economical energy. in the entire nuclear cycle

OUR STRATEGY To set the standard in CO 2-free power generation and electricity transmission and distribution. no.3 worldwide ■ Capitalize on our integrated business model to spearhead in electricity transmission and distribution the nuclear revival: – build one third of new nuclear generating capacities; – make the fuel secure for our current and future customers. ■ Ensure strong and proﬁ table growth in T&D. OUR PERFORMANCE IN 2007 ■ Expand our renewable energies offering. Backlog

With manufacturing facilities in 43 countries and a sales network in more than 100, e +55.4% AREVA offers customers reliable technological solutions for CO 2-free power generation and 39.83 B electricity transmission and distribution. We are the world leader in nuclear power and the only company to cover all industrial activities in this ﬁ eld. Sales Our 65,000 employees are committed to continuous improvement on a daily basis, making sustainable development the focal point of the group’s industrial strategy. e11.92 B +9.8 % AREVA’s businesses help meet the 21 st century’s greatest challenges: making energy available to all, protecting the planet, and acting responsibly towards future generations. Operating income e751 M +84.6 % Net income e743 M +14.5 % Customers across the globe Europe and CIS

56% of sales

71% of employees

MANUFACTURING OPERATIONS Austria, Belgium, France, Germany, Greece, Hungary, Italy, Kazakhstan, the Netherlands, Norway, Poland, Russia, Slovakia, Spain, Sweden, Switzerland, Turkey, United Kingdom

North and South America Asia-Paciﬁ c

17% of sales 19% of sales

13.5% of employees 11.5% of employees

MANUFACTURING OPERATIONS MANUFACTURING OPERATIONS Argentina, Brazil, Canada, Chile, Colombia, Australia, China, India, Indonesia, Japan, Mexico, United States, Venezuela Malaysia, Pakistan, Singapore, Thailand

Africa and Middle East

8% of sales

4% of employees

MANUFACTURING OPERATIONS Central African Republic, Ivory Coast, Egypt, Namibia, Niger, South Africa, Sudan, United Arab Emirates The integrated offer serving energy professionals Nucléaire

FUEL Nuclear CO 2-FREE POWER GENERATION FABRICATION SOLUTIONS

ENRICHMENT

REACTORS

CHEMISTRY

USED FUEL RENEWABLE RECYCLING ENERGIES

SERVICES Transmission & Distribution

MINING Transmission & Distribution SOLUTIONS FOR RELIABLE ELECTRICITY TRANSMISSION TRANSMISSION AND DISTRIBUTION

OTHER SOURCES OF ELECTRIC DISTRIBUTION POWER Harvesting business synergies for maximum competitiveness

Nuclear Transmission & Distribution FRONT END REACTORS AND SERVICES BACK END TRANSMISSION & DISTRIBUTION • Uranium ore exploration, mining • Design and construction of nuclear • Treatment and recycling of used • Supply of products, systems and services and concentration. reactors and other CO 2-free power nuclear fuel. for electricity transmission and distribution • Uranium conversion and enrichment. generation systems. • Cleanup of nuclear facilities. networks. • Nuclear fuel design and fabrication. • Supply of products and services • Nuclear logistics. for nuclear power plant maintenance, upgrades and operations.

e3.14B in sales e2.72B in sales e1.74B in sales e4.33B in sales 26% of consolidated sales 23% of consolidated sales 15% of consolidated sales 36% of consolidated sales 12,577 employees 16,500 employees 10,638 employees 25,248 employees

AT A GLANCE AT A GLANCE AT A GLANCE AT A GLANCE • Number 1 worldwide in the front end • Number 1 worldwide in pressurized water reactors • Number 1 worldwide in the treatment and • Number 1 worldwide in market management of the nuclear cycle. (in terms of installed capacity) and the only company recycling of used nuclear fuel. software and grid management software, • Production facilities in Europe, North America, in the world with four Generation III reactors under • Leader in used fuel transportation and storage. number 2 in high voltage products, Asia and Africa. construction or on order (EPR). • Main plant sites: La Hague and Melox, France. number 3 in medium voltage products. • Customers: leading nuclear power plant • World’s leading supplier of nuclear equipment • Customers: leading nuclear plant operators. • Manufacturing operations in more than operators. and services. 40 countries. • Turnkey supplier of wind turbines and biomass STRATEGIC PRIORITIES • Customers: 30,000 diversifi ed customers, STRATEGIC PRIORITIES power plants. • Strengthen used fuel treatment and recycling including integrated utilities, transmission and • Increase mineral resources and production. • Main manufacturing plants in France, Germany operations in France. distribution companies, electricity-intensive • Replace and expand production capabilities and the United States; additional plants in India • Market the technologies owned by the group industries and other infrastructure companies, in conversion and enrichment. and Brazil (biomass fi eld). worldwide. and distributors. • Strengthen positions in fuel fabrication • Strengthen the leadership position in used • Customers: leading operators of electric power STRATEGIC PRIORITIES by renewing our product portfolio. reactors, wind farm developers and operators of nuclear fuel storage. • Pursue efforts to improve processes, redeploy SUSTAINABLE DEVELOPMENT GOALS biomass-based cogeneration plants. • Market products and services related to the transportation of fuel and nuclear materials. manufacturing facilities and optimize the • Minimize the environmental impacts of disposal STRATEGIC PRIORITIES business portfolio. of mill tailings and nitrates and reclaim mine sites • Successfully complete the fi rst EPR projects (France, SUSTAINABLE DEVELOPMENT GOALS • Accelerate growth by intensifying marketing after closure. Finland, China). • Keep the environmental impacts of releases and sales and increasing manufacturing • Maintain a high level of safety in the use of raw • Broaden the reactor offering by drawing on industrial as low as possible. capacities, and through selective acquisitions materials and components. partners. • Limit the volume of operating waste that does in high-growth regions (China, India, etc.) • Reduce greenhouse gas emissions. • Strengthen engineering capabilities and secure not meet near-surface disposal acceptance or in certain market segments (high voltage, criteria. automation systems, etc.). • Contribute to the economic and social the supply chain. development of communities in which we • In reactor services, offer customers integrated • Keep worker exposure to radiation as low SUSTAINABLE DEVELOPMENT GOALS as reasonably achievable. do business. services that optimize their fl eet operations. • Expand eco-design approaches. • Maintain a high level of nuclear and occupational • Continue to monitor employee health. • Support R&D efforts on new generations of reactors • Reduce direct emissions of greenhouse gases and their applications. safety during nuclear materials transportation. • Apply eco-design concepts to new products linked to SF 6 releases. and plant projects. • Become a recognized player in renewable energies. • Widely institute environmental management • Successfully transfer expertise related SUSTAINABLE DEVELOPMENT GOALS and occupational safety systems. to changing technologies. • Widely institute the use of eco-design approaches for products and services. • Continue to improve environmental management systems and safety at major construction sites. RESPECT FOR AREVA Way, THE ENVIRONMENT

ENVIRONMENTAL a commitment to PROTECTION Limit our environmental sustainable development impacts by reducing our consumption of natural resources, controlling our releases and optimizing our waste management.

Sustainable development is a keystone FINANCIAL INNOVATION PERFORMANCE of AREVA’s industrial strategy for achieving Develop and harness growth that is proﬁ table, socially responsible Ensure the group’s best-in-breed technologies sustainability through to anticipate customer and respectful of the environment. long-term proﬁ table needs and increase growth. our cost-competitiveness To translate this choice into reality, AREVA while complying with nuclear safety, occupational integrates sustainable development into safety and environmental protection requirements. its management practices via a continuous improvement initiative revolving around CUSTOMER GOVERNANCE CONTINUOUS RISK MANAGEMENT SATISFACTION IMPROVEMENT AND PREVENTION ten commitments. Manage our operations Listen to our customers, responsibly in accordance Implement a continuous Establish and maintain anticipate their needs, with the group’s values, improvement initiative the highest level of nuclear support their growth, and and assess and truthfully based on practices shared and occupational safety increase and measure report on our performance throughout the group. in all of the group’s their satisfaction. to shareholders and operations to preserve all stakeholders. public and worker health, and to protect the environment.

COMMUNITY DIALOGUE INVOLVEMENT AND CONSENSUS BUILDING Participate in the economic and social Establish stakeholder development of relations based on trust. the communities in which the group operates. ECONOMIC DEVELOPMENT

COMMITMENT TO EMPLOYEES Promote our employees’ professional development and provide good working conditions.

SOCIAL/SOCIETAL EXPECTATIONS For more information

contents 12 Message from the Chairman of the Supervisory Board 14 Message from the Chief Executive Ofﬁ cer 18 Key data 22 2007 highlights 26 Corporate governance REQUEST THE REFERENCE DOCUMENT 30 Organization of the group www.areva.com 32 Share information and shareholder relations Leader and expert

38 Solutions for CO 2-free power generation 52 Solutions for reliable electricity transmission and distribution

To be and to act 58 Governance 60 Continuous improvement 62 Financial performance 64 Innovation 66 Customer satisfaction 67 Commitment to employees 70 Environmental protection 73 Risk management and prevention 75 Dialogue and consensus building 77 Community involvement

79 Auditors’ report 81 Reporting methodology 83 Data veriﬁ ed in 2007 84 Glossary 89 To learn more

11 – AREVA 2007 Message from Frédéric Lemoine, Chairman of the Supervisory Board

“Our most important responsibility is towards the economic development of humanity and the AREVA, embracing environmental preservation corporate responsibility of our planet.”

With the concept of Global Corporate Responsibility initiatives over the past fi fty years, as well as a truly be depleted eventually. This is true in every country, through our electricity transmission and distribution becoming the new imperative, from Davos to European champion of industry in our partnerships and as recent changes in Chinese environmental policy operations, by setting up power systems that are better the United Nations, it is only fi tting that I should reaffi rm our markets, and a world leader in all of our businesses. demonstrate. We need to remember that the world’s managed and less conducive to waste. our awareness of our many responsibilities towards Responsibility towards our employees, obviously, for proven oil reserves represent only forty years of supply, You will see in this report how all of AREVA’s units our stakeholders. In this area as in others, I believe that they are the source of our success and deserve to share according to the experts, while natural gas may last sixty are making very appreciable progress in preserving we are among the leaders. even more in the results. More than 65,000 people to a hundred years and coal about two centuries. our planet’s resources, including water, paper Responsibility towards our customers fi rst, who must meet the worldwide make up a growing and profoundly changing Nuclear energy is an answer that should be considered and energy, and how each of us is working to control challenges of growing demand for energy and who have the population to which the company is highly attentive without prejudice. This form of energy has the lowest our environmental footprint. right to expect the best of our technologies and know-how. and whose representatives to the Supervisory Board, CO 2 emissions – a critical factor in the fi ght against Our convictions and our consistency depend on it. Responsibility towards our shareholders as well. Most elected by the employees in 2007, very effectively relay the greenhouse effect. The ore containing this energy, AREVA’s plans depend on it. Our global responsibility recently, through clear and balanced governance, the their outlook and expectations. uranium, is plentiful and will be used even more depends on it. Our shared future depends on it. Supervisory Board was able to approve a strategic plan But I am not afraid to say that our most important parsimoniously as the century progresses. prepared by the Executive Board which gives AREVA a responsibility is for the economic development of humanity Our technologies and research programs focus clear path forward through 2020, with a more detailed map and the environmental preservation of our planet. I visited on recycling used nuclear fuel into fresh fuel, a subject for the next fi ve years. In a time of great change marked many of our 60 industrial sites over the past three years and of keen interest to major countries around the world. by the dramatic expansion of nuclear power and electricity I think that this feeling is becoming more deeply ingrained supply systems, this is highly useful to the company, in all of us over time. The environmental situation is always While nuclear power is an important solution for the future, for it allows us explain our substantial need for fi nancing on our minds. it is not the only solution. Other answers are quickly to our shareholders, now and in the future. emerging in renewable energies, where AREVA is active In fact, we have entered a new era of environmental in wind power, biomass and fuel cells. Responsibility, too, towards the national community awareness all over the world. Climate change is no longer and our European partners. For AREVA is simultaneously contested and human societies are now intuitively aware Energy conservation is another area with enormous a French success story, owing much to government that natural resources are imperiled and know that they will potential. We are able to make a contribution here as well,

12 – AREVA 2007 AREVA 2007 – 13 Message from Anne Lauvergeon, Chief Executive Ofﬁ cer

A winning integrated offer “Our success demonstrates In the nuclear business, our team scored numerous the relevance of our successes, including a contract worth more than 1 billion euros to provide enrichment services to KHNP of South integrated business model, Korea, or the contracts in Sweden to refurbish the Oskarshamn nuclear power plant and extend the service which covers the entire life of the Ringhals 4 power plant. The most signifi cant nuclear cycle.” event in the back end of the cycle was the contract awarded by a new customer, SOGIN of Italy, to treat used fuel from three former nuclear power plants. These are major deals, but they received less media coverage than our new nuclear power plant orders. The contract to supply the nuclear steam supply system for the EPR to EDF’s Flamanville 3 unit marked the group’s 100 th reactor order. In China, AREVA signed a historic 8 billion euro contract with CGNPC to build two EPRs and supply the materials and services needed to operate them. Also in China, we joined with China National Nuclear 2007: the year everything speeded up… Corporation (CNNC) to perform feasibility studies on For those who doubted the nuclear revival, for those the construction of a used nuclear fuel treatment and who still believed in cheap energy, for those recycling plant. This global agreement secures long who continued to deny the truth of climate change, lasting roots in a country that is developing one of the reality hit hard in 2007. largest nuclear programs in the world. The metamorphosis of the energy landscape continued The magnitude of this agreement also confi rms the with a speed that took most observers by surprise. relevance of our integrated offer covering the entire The United States, Canada, the United Kingdom, South nuclear cycle and its appeal on international markets. Africa, India, China … These major countries worked So far, 80% of our customers have ordered at least three relentlessly to boost their energy production, spurred products or services from the group’s value chain. by the same concerns: maintaining the competitiveness The Chinese contract also illustrates the advance of their industries and the purchasing power of their our EPR system has gained over its competitors of the citizens, defending the security of energy supply, same generation. This is why, in a booming market and and fi ghting climate change. In 2007, for the fi rst time with forecasts for more than 200 new reactors to be built in history, a government – that of the United Kingdom – by 2030, I wish to emphasize once more the competitive made carbon gas emissions reduction the leading advantage the OL3 project represents for us. This Finnish reason for its pro-nuclear power decision. EPR, the fi rst of many, gives our team and our In this fast changing environment, the AREVA group subcontractors a head start in acquiring the expertise stepped up the pace of growth even more and is leading needed to sustain the nuclear revival around the globe. the race. Our sales rose by almost 10% in 2007 to It is also a world class commercial showcase. The nature 11.9 billion euros. Operating income grew 2.6% of the diffi culties encountered during project execution, to 751 million euros. And the volume in backlog jumped which were explained with complete transparency, did not 55% in just twelve months. in any way alter our customers’ confi dence in this reactor. AREVA corporate headquarters in Paris (France). 14 – AREVA 2007 AREVA 2007 – 15 Message from Anne Lauvergeon, Chief Executive Offi cer

Notable contracts were also won in the fi eld of to bring this uranium mine, the second largest in a joint venture with Russian aluminum giant UC Rusal. “Our policy of targeted renewable energies, which round out our offering the world, into production. In addition to the benefi ts The T&D division will be the preferred supplier to Rusal for of CO 2-free power generation solutions. These include this agreement brings to the economy of Niger, we will turnkey projects and electrical equipment and services. acquisitions was instrumental an order for six biomass plants in Brazil and Thailand, continue to support local development through Our policy of targeted acquisitions was instrumental in strengthening our and a 500 million euro contract to supply offshore programs in the fi elds of health, education, training in strengthening our production capabilities wind turbines in Germany. More than ever, our goal and access to water and energy for the local population. in several strategic sectors. Our successful takeover production capabilities in is to pursue signifi cant growth on these markets. In uranium conversion – the processing step after of the Canadian fi rm UraMin, which owns deposits in several strategic sectors.” The Transmission & Distribution division (T&D) achieved mining –, AREVA launched the Comurhex II project, South Africa, Namibia and the Central African Republic, our profi t goals one year ahead of schedule. A sensible with commercial production scheduled to start in 2012. enables us to secure and diversify our uranium supply. marketing strategy yielded numerous contracts in fast In enrichment, construction of the Georges Besse II Production is scheduled to begin in Namibia in 2009. growing markets. In China, a fi rst contract in high plant continues, on time and within budget. Following through on our plan to strengthen our position voltage direct current gave us a foothold in this The T&D division made signifi cant investments as well. in renewable energies, we acquired a 51% equity interest promising segment. In the Middle East, we multiplied Production capacity and manpower will increase in Multibrid, a German company specialized in multi- our contracts and strengthened our leadership position signifi cantly at our high voltage gas insulated switchgear megawatt offshore wind turbines. A few months earlier, in one of the world’s largest markets in terms of growth. center of competence at Aix-les-Bains, France. our friendly takeover bid on wind turbine manufacturer The Canadian aluminum producer Alcan selected our The construction of two new buildings and 120 new hires REpower, in which we already held a 30% interest, technology to convert alternating current into direct current are slated for 2008. In China, our objective is to double was stalled when the Indian group Suzlon outbid us. an agreement signed with the European Metalworkers at some of its Quebec facilities. Overall, the backlog for our sales of T&D equipment. We inaugurated the fi fth Nevertheless, this transaction ended favorably for Federation (EMF) whose top priority is the equal treatment the T&D business was up a record 40%, while operating manufacturing plant for gas insulated switchgear the group, with our equity interest quadrupling in value. of employees, irrespective of gender, age, political margin posted new growth of 9.2%. This improvement in Suzhou and signed a joint venture agreement with persuasion, religious beliefs, physical characteristics or In the transmission and distribution fi eld, our position is a direct consequence of our repositioning on dynamic Sunten Electric, making us the leader on the Chinese ethnic origin. We are determined that this approach will be on the market for ultra high, high and medium voltage markets and the efforts made over the past four years market for dry transformers. implemented in every country in which the group operates. equipment was strengthened by the acquisition of two to reduce and adjust our cost structure. For high-tech groups such as ours, investment in R&D Italian companies, VEI Power Distribution and Passoni & Villa, The dialogue established between AREVA and its Substantial capital spending is critical. Our total R&D spending came to 813 million which were joined in early 2008 by the Finnish company stakeholders continued with the organization of a second euros in 2007, or 6.8% of sales – an increase of 21.5% Nokian Capacitors. Stakeholders Session. We were the fi rst in the world to In 2007, we continued to implement the capital investment from 2006. Most of this was allocated to mineral create health observatories near our mine sites under the program launched in previous years. exploration, certifi cation of the EPR and ultra high voltage. Responsible growth aegis of national authorities. The UN Global Compact Above all, we are investing in human capital. More than In 2007, we continued to deploy our AREVA Way total recognized our commitment to the fi ght against Aids when 11,500 people of diverse backgrounds and national Strategic development management method, developed as part of our sustainable it made a case study of our program in Niger. As an origins joined our team this year. To attract the talent The development of international partnerships is the most development policy. Key indicators point to the continuous extension of the patronage program we set up several needed for our fast growing businesses, we entered into important pillar of the group’s strategy to increase improvement of our performance. Our action plan led to years ago, we created a corporate foundation to support partnerships with 80 schools and universities around the production capacity. We made decisive steps forward a reduction in the group’s already limited greenhouse gas local humanitarian initiatives in the fi elds of development, globe. This paid off, particularly in France, where the in this area in 2007. Our pooling of resources with emissions from operations as part of an ambitious multi-year health and childhood. The foundation focuses specifi cally Universum survey ranked AREVA the fi fth most desirable Mitsubishi Heavy Industries to design an advanced emission reduction program. on projects that facilitate universal access to energy. employer for the most prestigious engineering schools. Generation III reactor in the 1,100 MW range took shape We also acquired greenhouse gas emission quotas st Our production Capex climbed to 1.3 billion euros with the creation of a joint subsidiary based in Paris, ATMEA. Meeting the challenges of the 21 century corresponding to the group’s direct emissions for the year. in 2007. In mining, our program to increase uranium In used nuclear fuel recycling, we strengthened our Because energy is everyone’s concern, because our And we took practical steps to remain carbon neutral in 2008 production capacity has shifted into high gear. partnership with JNFL, another major Japanese nuclear group is a world leader on rapidly expanding markets, and beyond, thereby becoming one of the fi rst industrial In Canada, we began operating the Midwest mine with company. In the United States, the Department of Energy because our integrated offer is unique and admired, groups to achieve such a result anywhere in the world. our partners Denison and OURD Ltd. In Niger, we awarded a contract to the INRA alliance led by AREVA, AREVA attracted a lot of attention in 2007. secured our long-term presence by signing a win-win Mitsubishi Heavy Industries, JNFL, Washington Group In employee relations, AREVA wants to build a solid Our brand is thriving, recognized and attractive for agreement with the government covering the terms International, BWX Technologies and Battelle to study contractual foundation enabling representatives of the our customers, our shareholders and our current for purchasing uranium from the existing mines and the development of a used fuel treatment plant and an employees, management and human resources to work and future employees… We are enthusiastically turned allowing us to mine the Imouraren deposit, discovered advanced generation reactor to recycle the fuel. The same closely together. Our European Work Council is a key to the future in a world that offers AREVA plenty of new by our geologists. AREVA will invest a total of 1 billion euros approach was used in the T&D business, which formed player in this dialogue. It took an active role in preparing opportunities for profi table growth.

16 – AREVA 2007 AREVA 2007 – 17 Key data

Backlog Sales 8% Total R&D spending 19% Africa and Middle East Asia-Pacific e e e 39.83 B 11.92 B SALES BY REGION 813 M 28% Europe excluding +55.4 % +9.8 % 28% France +21.5 % France The backlog reached a record level of 39.83 billion Consolidated sales came to 11.92 billion euros in 2007, compared with euros as of December 31, 2007, for 55.4% growth 10.86 billion euros in 2006, an increase of 9.8% in reported data and of 17% since the end of 2006. 10.4% like-for-like. North and South America This high level of growth comes from strong business in the Reactors and Services division (+15.2%) and the Transmission & Distribution division (+16.7%). Dividend

36% SALES BY BUSINESS e 64% Transmission 6.77 Nuclear & Distribution voted by the Annual General Meeting of Shareholders of April 17, 2008

751 Operating income Net operating Capex 2.889 1.248 407 e751 M I + 84.6 % e2.89 B I + 56.8 % Operating income came to 751 million euros in 2007, giving operating margin of 6.3% compared with 2006 2007 Net operating Capex for the group was up sharply in 2007, rising 56.8% from 2006 Capex. This change 3.7% in 2006. This increase reﬂ ects improved proﬁ tability in the Front End division and the Reactors and is the result of a sharp increase in Capex in the Front End division attributable to the acquisition of 2006 2007 Services division in particular. OPERATING INCOME UraMin and continued construction of the Georges-Besse II plant, and increased capital spending in e (in M) the Transmission & Distribution division with the acquisitions of Passoni & Villa and VEI Distribution. NET OPERATING CAPEX (in eBn)

743 649 49% 4% France Consolidated net income Number of employees Africa and Middle East e I 14.5 I 7.3 11.5% 743 M + % 65,583 + % Asia-Pacific 2006 2007 Consolidated net income rose to 743 million euros in 2007, compared with 649 million euros in 2006, i.e. The group had 65,583 employees as of the end of 2007, compared a 14.5% increase. CONSOLIDATED with 61,111 employees as of the end of 2006, a 7.3% increase. e 13.5% NET INCOME (in M) This change is mainly due to the growth of the group’s operations North 22% and the hiring that went with it. In 2007, 11,514 new employees joined and South America Europe excluding the group. France WORKFORCE BY REGION

18 – AREVA 2007 AREVA 2007 – 19 Key data

Safety Direct greenhouse gas emissions The AREVA group’s direct emissions of greenhouse gases (GHG) in 2007 represented

990,836 metric tons of CO 2 equivalent, 18.5% less than in 2006, after adjustment of raw data by business. Fossil fuels accounted for 36% of these emissions, while sulfur hexaﬂ uoride

(SF 6) represented 20% and nitrous oxide (N 2O) 39%. SF 6 emissions were cut back sharply in FREQUENCY RATE FOR WORK-RELATED SEVERITY RATE OF WORK-RELATED 2007 following modifi cations in 2006 to the ACCIDENTS WITH LOST TIME FOR ACCIDENTS WITH LOST TIME FOR AREVA GROUP EMPLOYEES AREVA GROUP EMPLOYEES treatment process for fl uorine vented by the Comurhex Pierrelatte site. N 0 emissions 2 23.9 2,895 2,806 2,925 32.5 come mainly from precipitation and calcining 31 For AREVA, occupational safety is an ever-present concern, whether for its own 20.6 19.4 employees or those of its subcontractors. Our goal does not change: zero accident. operations in the UO 3 production process 24.6 In 2007, the group achieved an average accident frequency rate of 3.55, two and half at the Comurhex Malvési site. Observations times less than in 2003. The accident severity rate target for 2010 has already been made using a continuous monitoring system met and even exceeded. However, there were unfortunately six fatal accidents set up in September 2007 helped partially among the group’s employees and subcontractors last year. Audits and action plans reduce emissions by improving the furnaces’ operating parameters. have been rolled out to strengthen risk identifi cation and management. 2005 2006 2007 2005 2006 2007 2005 20062007

WATER CONSUMED EXCLUDING ENERGY CONSUMED EXCLUDING PAPER CONSUMED COOLING WATER (in millions of m 3) EURODIF (in GWh) (in kg per employee)

Radiation protection The installation of a closed loop cooling system In 2007, as a result of strong business growth, Paper consumption continues to drop. Paper at the Chemistry business unit’s Comurhex the Mining business unit became the group’s reduction programs are being implemented in Malvési site was one of the highlights of 2007. largest energy consumer. The Treatment busi- every one of the group’s entities. By way of In just fi ve months of operation, it reduced ness unit continued to reduce its consump- example, reconfi guring printers for two-sided water consumption by 585,000 m 3, bringing tion, by 1.6% in absolute terms. printing resulted in the following reductions the site’s total water consumption down by Other notable changes were the Equipment from 2006 to 2007: DIRECT EMISSIONS OF GHG 36% as a result. From 2006 to 2007, after business unit’s ramp-up of Creusot Forge • Comurhex Malvési (Chemistry BU): – 10.4% (in thousands of metric tons of CO 2 equivalent) adjustment of raw data by business, water and Eurodif’s drop in consumption due to less paper purchased due to a 10% reduc- consumption dropped 14%. eco-effi ciency improvements at its facilities. In tion in per person consumption; 2007, a total of 2,925,200 MWh of energy • Sully-sur-Loire (Nuclear Services BU): – 21.1% AVERAGE RADIATION was consumed, excluding Eurodif, repre- less paper purchased due to a 23.9% reduc- EXPOSURE OF EMPLOYEES AND senting a 5% reduction in relation to 2006, tion in per person consumption; and SUBCONTRACTOR PERSONNEL 60% 24% Front End T&D after adjustment of raw data by business. • Mâcon (Products BU): – 17.1% less paper The average doses from radiation exposure continued to drop this year. This is a sign purchased due to a 19.7% reduction in per of good management of radiation protection in the group. person consumption. Total tons consumed, after adjustment of raw data by business, dropped 14.7% from 2006 10% to 2007. Back End

6% R&S DIRECT GHG EMISSIONS BY DIVISION IN 2007

20 – AREVA 2007 AREVA 2007 – 21 2007 highlights

JULY

MARCH

BRITISH UTILITY E.ON UK AWARDS CONTRACT TO AREVA for the design, supply, installation and start-up of onshore and offshore substations for two large wind farms. AREVA SUCCESSFULLY BIDS TO TAKE OVER THE AUGUST JANUARY MINING COMPANY URAMIN, MAY an important milestone in AREVA ACQUIRES AREVA WINS TWO CONTRACTS THE MEDIUM VOLTAGE FEBRUARY JUNE its plan to diversify sources FOR A COMBINED VALUE OF AREVA LAUNCHES and increase production. OPERATIONS OF VEI AROUND 400 MILLION EUROS AREVA TO BUILD SIX COMURHEX II PROJECT SUPPORTED BY MAJOR The deposits identiﬁ ed in POWER DISTRIBUTION S.P.A. for upgrades to unit 2 of BIOMASS POWER PLANTS, to give the group new ura- EUROPEAN UTILITIES, South Africa, Namibia and This acquisition helps the AREVA DONGFANG, A the Oskarshamn power plant four in Brazil and two in nium conversion facilities. AREVA applies for generic Central African Republic group strengthen its presence SUBSIDIARY OF AREVA AND and life extension of Thailand, for a total of more This 610 million euro in- design acceptance for its should result in an annual on the global electricity DEC, receives a letter of intent the Ringhals power plant. than 70 million euros. vestment will strengthen EPR from the UK regulatory production of more than distribution market and to supply 18 reactor coolant This success strengthens The 10 and 12 MW power AREVA’s world leadership authorities. The acceptance 7,000 metric tons of uranium become one of the leaders pumps to Chinese utility the group’s presence in plants will operate mainly with position in conversion. process will be conducted after 2012. of this segment in Italy CNPEC. The contract is valued the Swedish nuclear market. wood waste and rice husks. jointly with EDF. and Malaysia. at more than 100 million euros.

JANUARY FEBRUARY M A R C H A P R I L M AY JUNEJULYAUGUSTSEPTEMBEROCTOBERNOVEMBERDECEMBER JANUARYFEBRUARYMARCHAPRILMAY J U N E J U LY AUGUST SEPTEMBER OCTOBERNOVEMBERDECEMBER

APRIL AREVA TO DELIVER A POWER SEPTEMBER AREVA AND JNFL SIGN AREVA SIGNS AN AGREE- KHNP OF SOUTH KOREA, SUPPLY SYSTEM TO ALCAN A GLOBAL PARTNERSHIP MENT TO ACQUIRE PASSONI AREVA WINS A CONTRACT one of the world’s leading for its new production site AGREEMENT extending their & VILLA, a world leader in OF MORE THAN 100 MILLION generators of nuclear power, in Canada. The contract, cooperation in the ﬁ eld of used the manufacture of high EUROS TO BUILD A GAS- signs a contract with AREVA valued at more than 100 million nuclear fuel recycling. voltage bushings active in INSULATED HIGH VOLTAGE valued at more than one euros, calls for the turnkey The two groups will jointly more than 60 countries. The SUBSTATION in Saudi Arabia billion euros to provide ura- construction of a high voltage strengthen the industrial group is now number three and to refurbish 15 other nium enrichment services. system to convert alternating performance of their sister worldwide in this market substations. current into direct current. plants and pool their efforts segment. AREVA JOINS WITH UC RUSAL OF RUSSIA, to promote the closed fuel cycle at the international level. EDF CONTRACTS WITH THE WORLD LEADER IN ALUMINUM. The 50/50 joint AREVA FOR THE NUCLEAR AREVA AND SOGIN venture will become the STEAM SUPPLY SYSTEM (NUCLEAR PLANT preferred supplier of turnkey OF THE FLAMANVILLE MANAGEMENT COMPANY projects and electrical EPR IN FRANCE. This is IN ITALY) SIGN A CONTRACT AREVA ACQUIRES A 51% equipment and services the 100th reactor order for for more than 250 million euros STAKE IN MULTIBRID, a in the ﬁ eld of electricity the group and the second to treat 235 metric tons of used designer and manufacturer transmission and distribution EPR under construction in nuclear fuel. of multi-megawatt offshore to UC Rusal’s facilities. the world. wind turbines. The deal bolsters the group’s stra-

tegic position in CO 2-free power generation.

22 – AREVA 2007 AREVA 2007 – 23 2007 highlights 2007, the year of China

OCTOBER China is hungry for electricity. The forecasts see demand for an additional 900 to 1,000 gigawatts (GW) DECEMBER AS PART OF THE GLOBAL by 2020. Nuclear power is expected to meet part of that demand, and China is expected to triple its nuclear NUCLEAR ENERGY AREVA AND MHI ofﬁ cialize generating capacity to 40 GW by 2020. PARTNERSHIP (GNEP), the creation of the ATMEA joint and a team member (1) , AREVA venture. This joint company signs a contract with the US is starting to develop, license AREVA WINS CONTRACT OF THE CENTURY Department of Energy (DOE) and market the 1,100 MW JANUARY 2008 WITH INTEGRATED PROPOSAL to study the development of ATMEA1 reactor, designed AREVA ACQUIRES Finnish In November, AREVA With 3,000 employees a used nuclear fuel treatment to meet world demand for IN NIGER, AREVA RECEIVES company Nokian Capacitors signed a record-breaking in the country, the group plant and an advanced mid-range reactors. GOVERNMENT APPROVAL Ltd, thereby strengthening its generation reactor to recycle to launch the project to operate contract in China valued has been a partner position on the booming ultra the fuel. GNEP is arguing in the Imouraren site. The group at 8 billion euros – the to CGNPC for 20 years high voltage market. favor of closing the nuclear fuel will double its mining capacities largest in the history of and built the second cycle and recycling materials. TOTAL, SUEZ AND AREVA in Niger and create more than civilian nuclear power. generation Daya Bay The program should help sign a partnership agreement 1,400 direct jobs and numerous The end result: delivery and Ling Ao power plants improve the United States’ to make an integrated proposal indirect jobs. In addition, of two EPR type reactors operated by the energy independence while to the United Arab Emirates for AREVA is raising its purchase to Chinese utility CGNPC Guangdong utility. meeting growing domestic nuclear power generation with prices for uranium from the at Taishan, in southern With this record-breaking demand for energy. the supply of two 1,600 MW COMINAK and SOMAÏR mines China, and fuel supply contract, both companies

(1) AREVA, MHI, JNFL, Battelle, EPRs and fuel cycle products by about 50% to refl ect higher over a 15-year period. are entering a new era BWX Technologies. and services. ore prices. Thirty-fi ve percent of the and have created a 50/50 uranium mined by UraMin, joint company to provide a company acquired project engineering. JANUARYFEBRUARYMARCHAPRILMAYJUNEJULYAUGUSTSEPTEMBEROCTOBER NOVEMBER DECEMBER 2008 JANUARY in July 2007, was sold AREVA thus maintains A promising market for AREVA’s T&D division to CGNPC. control over technology AREVA’s Transmission & Distribution division is one of China’s To limit the foreign transfer. leading suppliers of high and medium voltage switchgear and NOVEMBER AREVA SUBMITS QATAR’S GENERAL AREVA ACQUIRES 70% exchange risk, AREVA Other partnerships were of safety and monitoring equipment and employs 1,800 people CERTIFICATION APPLICATION ELECTRICITY AND WATER OF KOBLITZ, a Brazilian made sure that all costs formed as well. in that country. It has eleven sales offi ces, operates fi ve plants, and HISTORIC PARTNERSHIP TO THE US NUCLEAR CORPORATION, Kahramaa, supplier of integrated solutions in euros are paid in euros; AREVA and China National has created numerous joint ventures with local partners.In 2007, AGREEMENT SIGNED IN REGULATORY COMMISSION awarded a contract valued for energy production the remainder is paid Nuclear Corporation after inaugurating its fi fth Chinese site, a gas-insulated switchgear CHINA BETWEEN AREVA (NRC) for its Generation III+ at around 500 million euros and cogeneration (heat and in dollars. (CNNC) agreed to carry manufacturing plant in Suzhou, the Transmission & Distribution AND CGNPC in civilian nuclear EPR. The group is the fi rst to AREVA’s Transmission electricity) from renewable The contract confi rms the out feasibility studies division created a 50/50 joint venture with Sunten Electric, power. The agreement, valued vendor to join forces with one of & Distribution division, sources. relevancy of the group’s for the construction of thereby becoming the Chinese leader in dry transformers and (2) at 8 billion euros, concerns the its customers for certifi cation, the biggest in its history. business model as the a used fuel treatment acquiring the means to double its sales in this segment by 2010. IN THE UNITED STATES, construction of two EPRs and the better to meet its The contract calls for only company in the and recycling plant. The Beforehand, the Transmission & Distribution division had formed requirements. AREVA WINS major nuclear fuel the supply of all of the mate- the turnkey supply of 14 gas- industry to cover the entire two companies have also another joint venture with Wuxi Aluminium Technology, a (2) AREVA and the US utility Constellation supply contracts from US rials and services needed for insulated substations (GIS) nuclear cycle. It is also a created a joint company in manufacturer of aluminum castings, which are strategic Energy formed UniStar Nuclear, a joint utilities Constellation Energy, their operation. venture created to promote the EPR so that it can expand and components for gas-insulated switchgear solutions. Because Tennessee Valley Authority continuation of AREVA’s the fi eld of zirconium, used technology and to market a fl eet of improve the power grid in R&D is crucial to T&D’s development, AREVA created standardized reactors in the United States. (TVA), PPL Corporation and long history in China. for fuel assembly cladding. the Doha region. a research center with the University of Tsinghua and concluded AmerGen Energy Company. JOINT VENTURE ASSOCIATES a cooperation agreement with the China Electrical Power These four contracts represent AREVA, DENISON AND OURD LTD Research Institute (CEPRI). Through these partnerships, AREVA a combined value of more announce their decision to start is strengthening its presence in China and preparing to meet than 200 million euros. operation of the Midwest mine strong demand for electricity transmission and distribution. in Canada. Located in northern Saskatchewan Province, one of the planet’s richest sources of uranium, the ore will be mined in an open pit operation, producing about 14,000 metric tons of uranium.

24 – AREVA 2007 AREVA 2007 – 25 Corporate governance

Strategy committee Audit committee Compensation End-of-life-cycle (1) SUPERVISORY BOARD RESPONSIBILITIES RESPONSIBILITIES and nominating obligations Responsible for advising Assesses and contributes to committee monitoring the Supervisory Board on the the defi nition of the group’s RESPONSIBILITIES committee Members Members RESPONSIBILITIES strategic objectives accounting, fi nancial and appointed representing of the company and for business ethics standards. Makes recommendations RESPONSIBILITIES The Supervisory Board assessing the risks and merits Ensures their relevance to the Supervisory Board on exercises ongoing control of Helps monitor the dedicated by the the French state, of major strategic decisions and effectiveness and verifi es compensation levels, pension asset portfolio set up AREVA’s management by the proposed by the Executive internal control procedures. and disability plans, and to cover future cleanup and shareholders appointed by Executive Board and approves Board. Ensures enforcement Undertakes studies on non-cash benefi ts for dismantling expenses. ministerial order the group’s overall strategy. Frédéric Lemoine (2) of the group’s strategic policy. particular points at the request corporate executives. Examines estimated future Examines the appropriateness Chairman of The annual and multi-year Orders studies as it deems of the Supervisory Board cleanup and dismantling Bruno Bézard and conditions for the Supervisory Board budgets of AREVA, of its useful and recommends or on its own initiative. expenses based on a multi-year Term: 2006-2011 implementation of stock Term: 2006-2011 direct subsidiaries and of the policies as it deems Reviews the company’s schedule, methods used to purchase plans for executives, Pierre-Franck Chevet group, are submitted to the necessary. proposed budgets, annual set up, manage and monitor Alain Bugat management and employees. Term: 2007-2011 Supervisory Board for approval. fi nancial statements and funds earmarked to cover Vice Chairman of MAIN ACTIVITIES IN 2007 multi-year plans. Gives its opinion to these expenses, and the the Supervisory Board Gérard Errera • Examination of the 2007-2011 Examines the conclusions the Supervisory Board on corresponding fi nancial asset MAIN ACTIVITIES IN 2007 Term: 2006-2011 Term: 2007-2011 Strategic Action Plan and of the statutory auditors appointments of corporate management policy. offi cers for fi rst-tier subsidiaries • Examination of the REpower issuance of concurrence. so as to assist the Supervisory Commissariat à l’énergie of the AREVA group. Luc Rousseau deal. • Examination of the REpower Board in its monitoring MAIN ACTIVITIES IN 2007 atomique (CEA) Reviews the records of Term: 2006-2011 affair. and verifi cation mission. • Examination of the estimate Represented by • Approval to carry out the individuals considered for a • Issuance of concurrence Recommends successors or of end-of-life-cycle liabilities Olivier Pagezy Comurhex II conversion plant for acquisition of UraMin. term renewals for the statutory seat on the Executive Board. Term: 2006-2011 and earmarked assets as Members project. auditors. of year-end 2006. Examines risk map MAIN ACTIVITIES IN 2007 • Approval to set up a joint • Examination of the selection Thierry Desmarest elected by and and assesses resources for • Issuance of concurrence Term: 2006-2011 venture between AREVA T&D criteria used by asset representing risk avoidance. on the appointment of managers for each asset Holding and Sunten. Mr. Luc Oursel to AREVA’s Oscar Fanjul (2) the employees category. MAIN ACTIVITIES IN 2007 Executive Board to replace Term: 2006-2011 • Approval of AREVA’s • Examination of the triennial Jean-Claude Bertrand acquisition of UraMin. • Examination of the fi nancial Mr. Vincent Maurel. report on the valuation Philippe Pradel Term: 2007-2012 statements for 2006. • Issuance of concurrence of long-term expenses for • Approval of AREVA’s Term: 2006-2011 • Examination of the status on the 2006 bonus set for the licensed nuclear facilities. acquisition of a 51% stake Gérard Melet of the OL3 project and members of the Executive • Review of the liability in Multibrid. Guylaine Saucier (2) Term: 2007-2012 of the consolidated fi nancial Board and on the updating coverage and asset allocation of their fi xed and variable Term: 2006-2011 • Approval of the 2008-2012 statements as of June 30, policy and of the revised Alain Vivier-Merle 2007. annual compensation. method for determining the Term: 2007-2012 Strategic Action Plan. • Examination of the 2007 • Examination of the mobility discount rate. • Approval of the 2008 budget and 2008 budgets. policy for senior executives • Examination of the main proposal. • Review of the group’s risk of the AREVA group. changes in assumptions map. • Decision to use an • Approval of AREVA’s buy out to be used to revise • Examination of the 2007 independent agency to of 70% of Koblitz. the end-of-life-cycle provisions internal audit report and search for at least one for the La Hague site. review of the internal audit additional independent • Examination of cash fl ow plan for 2008 . director. forecasts for 2007, of fi nancial income related to end-of-life-cycle operations and of the current status of dedicated mutual funds. (1) As of March 30, 2008. (2) Following commonly accepted rules of good governance, particularly those of the Bouton Report, individuals who hold less than 10% of the share capital and who have no fi nancial or commercial relationship with the company, either as customer 12 or supplier, are considered independent. meetings 4 8 3 3 meetings meetings meetings meetings

For complete information on the terms 84% of the members of the Supervisory Board, attendance rate 85% 93% 100% 87% please see our reference document. attendance rate attendance rate attendance rate attendance rate 26 – AREVA 2007 AREVA 2007 – 27 Corporate governance SCIENCE AND ETHICS COMMITTEE

RESPONSIBILITIES INDEPENDENT MEMBERS Georges Charpak Alain Touraine (1) Nobel Prize in Physics Sociologist, Chief Scholar AREVA’s Science and Ethics Roger Balian EXECUTIVE BOARD at the École des hautes études Chairman of the Société committee supports Jean-Marie Colombani en sciences sociales the group’s reviews of major française de physique, Journalist, Chairman Member of the Académie social issues linked to the of JMC Média Maurice Tubiana RESPONSIBILITIES MAIN ACTIVITIES IN 2007 des sciences Executive Board energy sector and formulates Former Chairman of François Ewald members Full powers are vested • Examination of the REpower François Balle the Académie de médecine, recommendations to Professor at the Conservatoire project. Professor at the University Member of the Académie in the Executive Board to act the Chairman of the Executive national des arts et métiers, Anne Lauvergeon on behalf of the company of Paris II, former Member des sciences, Honorary Chief Executive Offi cer • Approval of the Comurhex II Board. Chairman of AREVA’s Science in all circumstances with of the Conseil supérieur Director of the Institut Gustave of AREVA project. and Ethics committee Roussy, Honorary Chairman regard to third parties, MAIN ACTIVITIES IN 2007 de l’audiovisuel Term: 2006-2011 of the Centre Antoine-Béclère, excepting powers expressly • Organization of the James Lovelock • Nuclear non-proliferation. Geneviève Barrier-Jacob Honorary Chairman of AREVA’s attributed by law to the Renewable Energies Companion of Honour, Gérald Arbola Professor Emeritus at Science and Ethics committee Chief Operating Offi cer Supervisory Board and to the business unit. • AREVA’s innovation policy. the Faculté Necker-Enfants Commander of the Order Meetings of the Shareholders. of the British Empire, of AREVA • Approval of the 2008-2012 • The rational in long-term Malades, former Director of Member of the Royal Society, Term: 2006-2011 The Board meets as often Strategic Action Plan. energy choices and the the Samu de Paris emergency AREVA MEMBERS Honorary Visiting Fellow as the company’s interests impact of European policy. medical service and former Didier Benedetti of Green College, Anne Lauvergeon dictate. • Approval of the acquisition Vice Chairman of the Comité Chief Operating Offi cer of UraMin. • The potential for use of national consultatif d’éthique Oxford University Chief Executive Offi cer of AREVA NC nuclear in the medical fi eld. Term: 2006-2011 • Issuance of concurrence Christian de Boissieu Roland Masse Alain Bucaille on AREVA’s acquisition of a • Communications in the fi eld Chairman of the Conseil Member of the Académie Senior Vice President, Luc Oursel majority interest in Koblitz. of advanced technology. d’analyse économique, des technologies, former Research and Innovation President and Chief Executive Professor at the University of Chairman of the Offi ce Offi cer of AREVA NP Paris I–Panthéon Sorbonne de protection contre Bernard de Gouttes Chief Legal Counsel Term: 2007-2011 les rayonnements ionisants Édouard Brezin (OPRI) Professor Emeritus at the Olivier Loubière Université Pierre et Marie Curie, Érik Orsenna Business Ethics Advisor Member of the Laboratoire de Writer, Member of physique théorique de l’École the Académie française normale supérieure, Honorary Professor at École Michel Serres Polytechnique, Member Science historian, Member of the Académie des sciences of the Académie française

THE AREVA VALUES CHARTER AREVA’s values are the essence of the group’s sustainable development strategy. They include integrity, an acute sense of professionalism, responsibility, sincerity, partnership, profi tability and customer satisfaction. Respect for human rights, made clear from the Charter’s preamble, is woven throughout the AREVA Values Charter, which also refers explicitly to the United Nations Global Compact and to the Guidelines for To learn more Multinational Enterprises of the Organization for Economic Cooperation • The AREVA Values Charter and Development. A veritable set of standards that enter into the scope of is available at audits, the Values Charter is applicable to all of the group’s executives www.areva.com and employees. Management is responsible for implementing the Values • The principles of the United Nations Global Compact may Charter at every level. The Charter encompasses our values, our action be found at principles and our rules of conduct. www.unglobalcompact.org The group’s Business Ethics Advisor, appointed by the Chief Executive • The OECD guidelines Offi cer, advises management in the event of confl icts concerning the for multinational enterprises application of the Values Charter, designs and oversees training programs are available at in ethics and group values in liaison with AREVA University, and provides www.oecd.org leadership for a network of coordinators in the fi rst-tier subsidiaries.

28 – AREVA 2007 (1) As of March 30, 2008. AREVA 2007 – 29 Organization of the group *

Corporate Departments

Audit Legal Affairs Strategic Risks, Contracts Marc Andolenko Bernard de Gouttes and Claims Management Communications Protection of Persons José-Luis Carbonell Jacques-Emmanuel Saulnier and Corporate Assets Strategy Development Thierry d’Arbonneau François-Xavier Rouxel Félicité Herzog Purchasing Sustainable Development Finance Patrick Champalaune and Continuous Improvement Alain-Pierre Raynaud Research and Innovation Jean-Pol Poncelet Human Resources Alain Bucaille Philippe Vivien Scientiﬁ c Information Systems Philippe Garderet Benoît Tiers Senior Manager Career International and Marketing Development and University Jean-Jacques Gautrot Robert Pistre

3 4 7 1 5 2 6

Front End Reactors Back End Transmission EXECUTIVE COMMITTEE Mining, Chemistry, and Services Recycling, Logistics, & Distribution Enrichment Plants Nuclear Site Value Products 1 Olivier Mallet Claude Jaouen Development Ghislain Lescuyer Anne Lauvergeon Jacques Besnainou Fuel Equipment Service Chief Executive Offi cer Ralf Güldner Guillaume Dureau Engineering Philippe Samama and Chairman of Christian Petit Nuclear Services Systems the Executive Board Joël Pijselman Cleanup Michel Augonnet Yves Lapierre Nuclear Measurement Automation 2 3 4 5 6 7 Frédéric Van Heems Anil Chaudhry (acting) Gérald Arbola Alain-Pierre Raynaud Didier Benedetti Philippe Guillemot Luc Oursel Philippe Vivien Consulting Chief Operating Chief Financial Chief Operating Chairman and Chief President and Chief Senior Executive and Information Offi cer Offi cer Offi cer of AREVA NC Executive Offi cer Executive Offi cer Vice President, Systems Khaled Draz Member of the Member of the of AREVA T&D of AREVA NP Human Resources Executive Board Executive Board Member of the AREVA TA Executive Board Dominique Mockly Renewable Energies Bertrand Durrande

30 – AREVA 2007 * As of March 30, 2008. AREVA 2007 – 31 Share information and shareholder relations

Share information 4% OF AREVA’S SHARE CAPITAL IS TRADED ON EURONEXT PARIS IN THE FORM SHAREHOLDERS AS OF DECEMBER 31, 2007 4% Trading exchange OF INVESTMENT CERTIFICATES (IC), I.E. SHARES WITHOUT VOTING RIGHTS. Listed ICs 87% Euronext THE AREVA IC IS INCLUDED IN THE SBF 120 INDEX OF EURONEXT PARIS. French state Commissariat à l’énergie atomique 79% Market French state 5% Euronext Paris – Compartiment A Erap 3% Index Investment certifi cate price in 2007 Caisse des Dépôts et Consignations 4% SBF 120 / MID CAC 100 IC holders (fl oat) 4% 1,429,108 investment certifi cates listed EDF 2% Framépargne (1) 2% Total number of outstanding Total 1% shares and ICs: 35,442,701 +39.06 % 34,013,593 shares (1) Framépargne: fund in which AREVA employee shares are held under 1,429,108 investment certifi cates the Group Savings Plan. Some of the shares (0.89%) are held by Calyon, 1,429,108 voting right certifi cates the bank that ensures the liquidity of the Framépargne fund.

IC PRICE SINCE THE GROUP’S ESTABLISHMENT AREVA IC Codes ISIN FR: 0004275832 CAC 40 Reuters: CEPFI. A e900 Bloomberg: CE I

e800 Custodian services e700 CACEIS CT e Investor Relations e600 6.77 14, rue Rouget-de-l’Isle 92130 Issy-les-Moulineaux Cedex 09 e500 2007 dividend France Tel.: +33 1 57 78 34 44 The General Meeting of Shareholders of April 17, 2008 approved a dividend e400 Fax: +33 1 57 78 34 00 of €6.77 per share or investment certiﬁ cate. This dividend corresponds E-mail: [email protected] to a distribution rate of 32.3 % of consolidated net income for 2007 and will be e300 paid on June 30, 2008.

e200

e100 12/31/2001 12/31/2002 12/31/2003 12/31/2004 12/31/2005 12/31/2006 12/31/2007 9/03/2001 2/29/2008 IC trading data 2007 2006 2005 Price at December 31 (in euros) 785.0 563.0 405.5 Market capitalization at December 31 (in billions of euros) 27.82 19.95 14.37 Since AREVA’s establishment on September 3, 2001 until February 29, 2008, the price of the company’s investment certiﬁ cate has risen by 387.5%, outperforming the CAC 40, which gained 3.5% over the same period, and the EuroStoxx 50 index, High (in euros) 831.5 650.0 460.5 which gained 0.9%. In 2007, the investment certiﬁ cate posted growth of 39.06%, compared with 0.69% for the CAC 40 and Low (in euros) 552.5 403.0 301.0 6.79% for the EuroStoxx 50 index. Average daily volume (in number of ICs) 7,067 5,255 7,127 The average daily volume traded was 7,067 ICs in 2007, compared with 5,255 ICs in 2006 and 7,127 ICs in 2005. In terms of value, the average daily volume traded came to 5.1 million euros in 2007, up from 2.7 million euros in 2006 Net earnings per share or IC (in euros) 20.96 18.31 29.6 and 2.5 million euros in 2005. Net dividend (in euros) 6.77 8.46 9.87

32 – AREVA 2007 AREVA 2007 – 33 Share information and shareholder relations

More than Our objective: to implement best practices in online fi nancial communications analysts and investors encountered 1,000 in key fi nancial centers www.areva.com The mission of the website is to provide comprehensive information on the group’s news and operations. The Finance Nearly section, dedicated to the fi nancial community, presents AREVA’s businesses in the context of global energy challenges, the group’s strategic objectives, and the fi nancial press releases plant tours organized performance of its divisions’ operations. To ensure that published for analysts and investors information is widely available, this heading also offers 50 5 rebroadcasts of presentations of fi nancial results and topical presentations given during plant tours.

Financial communications program Calendar Contacts

The purpose of fi nancial communications is to provide The sixth session took place in India in April 2007. It provided Isabelle Coupey accurate information to shareholders and investment an opportunity to review the Transmission & Distribution June 30, 2008 Vice President, Financial Communications certifi cate holders on the group’s markets, businesses, division and to give an overview of India’s energy challenges. Dividend payment for 2007 and Investor Relations fi nancial performance and strategy. The group also organized fi ve plant tours in 2007 for analysts Tel.: +33 1 34 96 14 85 July 24, 2008 [email protected] Financial information is of major importance to AREVA. and investors. First half 2008 sales Any information of a fi nancial, business, organizational The fi nancial communications team met more than 1,000 analysts Manuel Lachaux or strategic nature that may be of interest to the fi nancial and investors in key fi nancial centers in 2007 during road Financial Information and Analysis Manager community is provided through press releases, shows, private meetings and plant tours. August 29, 2008 Tel.: +33 1 34 96 11 53 nearly 50 of which were published in 2007. First half 2008 income Several publications and media are used to disseminate [email protected] Every year, the group holds an information meeting on its fi nancial information, including the reference document, fi nancial performance and a telephone conference to the activity and sustainable development report, and the website October 23, 2008 Third quarter 2008 sales Pauline Briand comment on half-year results. The AREVA Technical Days www.areva.com. Individuals interested in receiving press and related information Marketing and Retail Shareholding Manager program was launched in 2002 to introduce the group’s releases by e-mail may register on the group’s website, which also Tel.: +33 1 34 96 14 02 businesses and technologies. Since then, six sessions have features a schedule of upcoming events and announcements. [email protected] been held, each time with 100 to 150 people attending, Shareholders have 24-hour access to a dedicated e-mail including analysts, investors, journalists and fi nancial address and a reduced toll number in France. investment advisors. Retail Shareholder Relations

(in France only) [email protected]

34 – AREVA 2007 AREVA 2007 – 35 AREVA turned six years old in 2007. Six years in which we pooled the group’s Leader know-how and launched decisive investments to bring to the world market comprehensive solutions for CO 2-free power generation and and grid infrastructure. expert

AREVA 2007 – 37 SOLUTIONS FOR CO 2-FREE Ensuring fuel supply, POWER GENERATION now and in the future

If more nuclear power plants are built, more fuel will be needed to operate them. The Investment, operation mining: The UraMin nuclear revival has focused electric utilities’ AREVA goes into high gear attention on uranium inventories. After a long acquisition period of low prices, this sudden interest strengthens long caused uranium prices to explode, with prices AREVA’s customers plan ahead. UraMin has a production potential of rising tenfold from 2003 to 2007. Enough They want more and more uranium 7,000 metric tons of uranium per year. term uranium to accelerate the necessary investments and are ordering it earlier and earlier. This momentous investment was not in exploration and mining. In 2007, the Front End division’s the only excellent news of 2007. production backlog jumped 33% to 88,000 met- In Kazakhstan, the Katco joint ven- The acquisition brings three new large-scale ric tons of uranium, 60% of which ture inaugurated the new Tortkuduk mining projects to AREVA: Bakouma in will be delivered after 2012. AREVA’s plant in July and marked its fi rst full the Central African Republic, Ryst Kuil in South ambition is to give customers the year of production. Africa, and especially the gigantic Trekkopje assurance that they will always have AREVA also received several per- deposit in Namibia. enough fuel to operate their power mits to launch new projects. In This is a strategic investment for the group plants. Already the third largest ura- Niger, the group received the green and constitutes a guarantee of supply nium producer in the world, the light from the government to mine for its customers. This was demonstrated by group has decided to expand its the Imouraren deposit, thus secur- the contract signed in November with CGNPC, the electric utility of Guangdong Province, mining investment program signifi - ing its mine operator position in that China, assuring among other things fuel cantly. The goal: to boost produc- country for decades to come. In supply corresponding to 35% of UraMin’s tion while diversifying sources of Canada, AREVA began operating production. supply. the Midwest mine, in which it has a The acquisition of the Canadian fi rm 69.16% interest, in December. Also UraMin in August 2007 meets this in Canada, the Nunavut government two-pronged strategic target. With approved the feasibility study for deposits in Namibia, South Africa the Kiggavik project in September and the Central African Republic, on behalf of the Inuit community.

5,000 metric tons of uranium mined per year at full AREVA IN NIGER capacity, more than one billion euros invested… Production the Imouraren site is the largest commercial Development mining project ever contemplated in Niger. Mining It is part of the win-win partnership between the group Corporate ofﬁ ce and the government of Niger signed in January 2008. With Imouraren, AREVA will double its mining capacity in Niger and create more than 1,400 direct jobs and numerous indirect jobs. The group is also raising its purchase prices for uranium from the COMINAK and SOMAÏR mines to reﬂ ect the increase in ore prices. Meanwhile, it plans to pursue its community development activities in Niger, including irrigation projects and vocational training.

Uranium ore processing plant 38 – AREVA 2007 operated by SOMAÏR (Niger). AREVA 2007 – 39 SOLUTIONS FOR CO 2-FREE POWER GENERATION Ensuring fuel supply, now and in the future

The clean room of the Georges Besse II plant (France). Georges Besse II, a technology Construction of the huge Georges shift that conserves huge quantities Besse II plant continued in 2007. of energy

This is a major milestone in the plan In 1978, the gaseous diffusion pro- production lines are scheduled to cess used in AREVA’s Eurodif plant start up in the fi rst half of 2009. to replace enrichment production at the Tricastin site in France was Plant construction and ramp-up will capability in terms of both size the best technology available to en- continue until full production ca- rich natural uranium and turn it into pacity of 7.5 million SWU is reached and modularity, and because an effi cient fuel. The time having in 2016. With this capital project, come to replace its production the group, as the world leader in en- the ultracentrifugation technology equipment, AREVA opted for ultra- richment with a 23% market share, URANIUM CONVERSION is a key step in the nuclear centrifugation, a process that uses will be able to guarantee the long fuel production cycle. selected will consume 50 times less 50 times less energy. The Georges term security of supply on which its It concentrates uranium electricity than the current process. Besse II plant also features an in- customers are counting for their stripped from the ore in the novative modular design. The fi rst own capital projects. form of uranium hexafl uoride, ready for enrichment.

Reinforcing a leadership position Demand is rising on the conversion in the United States market The United States is one of the most promising markets for the nuclear industry, in every AREVA, the world leader in conversion with a step of the fuel cycle. And with the support of Feed 26% market share, has launched a 610 million euro capital spending project to replace its US customers, AREVA is able to offer Depleted Enriched production capability known as Comurhex II. solutions for every step. uranium uranium The project will upgrade the Malvési and To meet demand for new enrichment capacity, Tricastin sites in France, which provide AREVA is contemplating the construction the two phases of conversion. Once completed, of its own plant in the US, patterned after production capacity will rise to meet the Georges Besse II. This represents an growing demand for nuclear fuel. investment of 2 billion dollars. The plants will deploy new, more effi cient Submittal of the license application to technologies that consume less water, energy the US Nuclear Regulatory Commission (NRC) In ultracentrifugation, and raw materials, and will release fewer is slated for 2008. The plant would have rows of cylinders or “bowls” effl uents and fl uorine. Construction began a production capacity of 3 million Separative are installed. They separate in the summer of 2007; commercial Work Units (SWU). uranium hexafl uoride production is slated for 2012. molecules by spinning at very high speed. The heavier particles, containing the uranium-238 isotope, are projected to the walls of the bowl. View of Georges Besse II The lighter molecules, plant construction (France). containing uranium-235, remain near the center. The proportion of light, fi ssile molecules increases from one bowl to the next, thus enriching the mixture. 40 – AREVA 2007 AREVA 2007 – 41 SOLUTIONS FOR CO 2-FREE Offering the best POWER GENERATION of Generation III reactors

For a power grid to incorporate a reactor A new range of reactors led with a capacity as high as 1,600 MW, two by the success of the EPR conditions must be met: a robust grid capable of accommodating it and substantial demand for electricity. For some countries AREVA’s goal is to build one third from Helsinki. Measures have been in Southeast Asia, Eastern Europe and of new nuclear generating capaci- taken to accelerate construction, North America, 1,000 MW may be enough. ties worldwide in the years to come. with the goal of connecting the In fact, it has already surpassed reactor to the grid in 2011. In 2007, this goal: of the eight new reactors rebar was laid and concrete was under construction or on order in poured for the outer structure, the world today, four were designed numerous components were deliv- AREVA and MHI by AREVA. This fi gure underscores ered, and a fi rst steam generator created ATMEA the group’s leadership in the design and reactor vessel were manufac- and construction of Generation III tured for the future power plant, to develop mid-range reactors. With the success of the one of only two Generation III reac- reactors EPR and the development of the tors under construction in the world. ATMEA 1 reactor, designed in part- Construction of the second one To offer an advanced reactor on the medium-size nership with MHI of Japan, AREVA has just begun in France. In Janu- reactor segment, AREVA and Mitsubishi Heavy offers its customers a range of ary 2007, the group signed a con- Industries (MHI) created a 50/50 joint venture in reactors from which to choose. The tract with EDF to supply the nuclear December called ATMEA. It is aiming to become EPR is a Generation III+ reactor steam supply system for the the world leader on the medium power market. The partners are working together on the design based on pressurized water tech- Flamanville EPR in Normandy. The of ATMEA 1, an 1,100 MW Generation III+ nology, the most prevalent in the fi rst concrete was poured at the pressurized water reactor. The new reactor will world. With 1,600 MW of generating end of 2007 and component combine the nuclear technologies of AREVA and capacity, it optimizes fuel perfor- manufac tu ring has been launched, MHI and will feature advanced safety and security mance while reducing uranium along with engineering and pro- systems, high thermal effi ciency and a fl exible consumption and generating less curement. operating cycle ranging from 12 to 24 months. waste. The Finnish utility TVO was In China, AREVA will build two EPRs Like the EPR, it will use less fuel and lower fuel the fi rst to choose the EPR, which for the Guangdong utility CGNPC costs while reducing waste volumes and is now under construction at its and supply all of the products and environmental impacts. The two groups decided Olkiluoto site about 150 kilometers services needed for their operation. to pool their experience and resources to bring this new range to market quickly. ATMEA is expected to set a record for a license application submittal, slated for the end of 2009.

Most of the nuclear power plants in operation were built in the 70s and 80s. The United States, the United Kingdom, France and Japan will have to extend the life of their existing plants and build new reactors. With the power plants planned in China, the Middle East, South Africa and elsewhere, some 100 to 300 reactors will be built between now and 2030.

Tubing a steam View of the Olkiluoto construction 42 – AREVA 2007 generator for an EPR. site (Finland). AREVA 2007 – 43 SOLUTIONS FOR CO 2-FREE POWER GENERATION Offering the best of Generation III reactors

AREVA joins forces The EPR tomorrow

with Total and Suez The nuclear fl eet of the United Two reactor vendors, including for a nuclear power States – the largest in the world – AREVA, made the short list to will have to be replaced if not respond to a call for tender issued plant project in the expanded. New reactor construc- in November. tion is expected to start very soon, The United Kingdom has the United Arab Emirates possibly as early as 2010, and world’s ninth largest reactor fl eet. The three partners will make an integrated AREVA is getting ready for it. With In January 2008, after a two proposal for nuclear power generation to the the US utility Constellation Energy, year democratic consultation, the UAE, including the supply of two 1,600 MW it created the joint venture com- UK government led by Gordon EPRs along with fuel cycle products and pany UniStar Nuclear to market, Brown offi cially announced the services. certify and build the EPR in the relaunch of the British nuclear Suez has outstanding expertise as United States. The certifi cation power program. Supported by a nuclear power plant operator gained from request was submitted to the US 11 major British utilities and already designing and operating Belgium’s entire Nuclear Regulatory Commission established in Great Britain with reactor fl eet. Total has already managed (NRC) in December. 1,900 employees, AREVA is well numerous industrial projects in the Persian The NRC review could take about placed to supply EPRs for the Gulf in close partnership with the authorities and businesses of the UAE. Total and two years. Without waiting, fi ve majority of the new fl eet to be built Suez are already partners in power generation major US utilities have already in the UK. The group hopes to and water desalination at the Taweelah expressed their interest in the US build at least four reactors, and power plant, which produces about 20% EPR. Most recently, PPL Corpora- probably six. The licensing phase of Abu Dhabi’s electricity. tion announced in December that is set to begin in 2008. Partnered with these top-tier companies, it would submit a combined con- AREVA will contribute its know-how in struction and operating license integrated offers for nuclear islands and application (COL) to the NRC for the fuel chain. an EPR at the Susquehanna site near Berwick, Pennsylvania. On another continent, South Africa is launching a new nuclear program.

Sweeping projects in China and India

In India, 68% of all electricity is generated with coal. In China, that percentage rises to 79%. With demand for energy growing exponentially in both countries, nuclear power is essential to future growth. China has set a goal of tripling its nuclear generating capacity by 2020 and increasing it tenfold by 2030. As of the end of 2007, six new reactors were already under construction or in the proposal phase, including two EPRs. India, meanwhile, is constantly short of electricity despite its enormous generating capacity. The government wants to add 40 GW to its nuclear generating capacity by 2020, or the equivalent of 25 to 30 new reactors. AREVA is getting ready to play a major role in these projects. But the expansion of civilian nuclear power in India depends on the creation of an international legal framework. The process of integrating India into the international civilian nuclear community has begun. France and India signed a joint declaration in February 2006 and are expected to sign a bilateral agreement in the near future. In addition, the United States and India signed an agreement for cooperation concerning the peaceful uses of nuclear energy in 2007. This agreement must still be approved by the US Congress.

Representation of the primary, secondary 44 – AREVA 2007 and auxiliary systems of an EPR. AREVA 2007 – 45 SOLUTIONS FOR CO 2-FREE POWER GENERATION Offering the best of Generation III reactors

Considerable human and industrial AREVA is getting resource requirements bigger in renewable energies Designing, optimizing and building Suppliers must also be prepared to

the hundreds of nuclear reactors ramp up production. The group is The future of energy lies in CO 2-free power planned around the globe in the providing ongoing assistance to generation. This includes nuclear power as next 20 years will take trained, help them adapt their know-how well as renewable energies, in which AREVA experienced engineers and techni- and production tools to the new wants to be a major industrial player. In cians. AREVA is planning ahead state of affairs in the nuclear indus- October 2007, the group strengthened its wind for this revolution and investing try. To secure its supply of key power expertise with the acquisition of a 51% interest in Multibrid, a German manufacturer in human capital by stepping up components, the group acquired of offshore wind turbines. This company is its hiring program considerably. Sfarsteel, a manufacturer of very growing quickly – from 60 employees in 2007 A lean manufacturing program was large forgings near Le Creusot, to a projected 100 employees in 2008 – and launched to optimize and resize France. This strategic supplier, brings two trail-blazing offshore wind farm production capacity at AREVA’s which employs 400 people, is now projects to AREVA: Borkum West II (400 MW) sites. fully integrated into the group’s in Germany and Côte d’Albâtre (105 MW) The JNSM plant in France, which manufacturing organization. in France. In January 2008, AREVA banked designs and manufactures reactor on Brazil with the acquisition of 70% of Koblitz, safety components, is getting a supplier of biomass and cogeneration power ready to invest in production capa- plants and small hydro plants. This acquisition is consistent with AREVA’s development bilities to be able to equip four to strategy in CO -free energies. It also ﬁ ve nuclear reactors per year, dou- 2 strengthens the group’s position in a country ble its existing capacity. in which renewable energies generate 90% of the electricity (80% of which is from hydropower) and where the use of sugar cane as fuel is expected to grow by 50% over the next ﬁ ve years.

Shortly after acquiring Sfarsteel, AREVA invested 25 million euros at the Creusot site. The objective is to install three large scale blast furnaces and towers to increase production capacity for very large forgings, particularly for the EPR.

High-bay building for heavy component manufacturing 46 – AREVA 2007 at the Chalon Saint-Marcel plant (France). AREVA 2007 – 47 SOLUTIONS FOR CO 2-FREE AREVA, POWER GENERATION leader in recyclable energy

Prices for uranium SINCE 2001, AREVA HAS BEEN WORKING are soaring, stockpiles ON A NEW CONCEPT FOR A COMPLETELY are diminishing and INTEGRATED RECYCLING PLANT to the disposal of used co-extract and co-convert uranium and nuclear fuel is plutonium. The ﬁ rst industrial unit should increasingly problematic. be ready in 2020. The recycling practiced in France by AREVA will gain ground in other countries as well, including those that Third generation were strongly in favor recycling is under of the direct disposal of used fuel up until now. way The plants that China and the United States are thinking of building are based on “third generation recycling.” They would use the COEX™ process (for co-extraction) developed by AREVA in partnership with the CEA. In this process, the uranium and Fuel recycling is gaining ground plutonium are extracted and converted together in the same production line rather than processed separately. This eliminates With 90% of world production in to study the development of a the ﬂ ow of pure plutonium, a prerequisite 2007, AREVA is the undisputed used nuclear fuel recycling plant for responding to the nuclear non-proliferation leader in used nuclear fuel recy- in the United States that would concerns of the US market. By integrating the entire production chain, this process also cling. Its La Hague and Melox provide fuel for a Generation IV generates large economies of scale. plants in France have set the stan- reactor. The contract is part of the dard in this field. In Japan, a rep- Global Nuclear Energy Partnership lica of the UP3 unit of the La Hague (GNEP) presented by the Bush plant was built at the Rokkasho Administration in February 2006. Mura site. AREVA’s capabilities and The La Hague and Melox plants know-how on proven technology will also benefit from renewed make its offering unique and pro- global interest in recycling. In May, vide a response to customer con- AREVA signed a contract for more cerns. than 250 million euros with Sogin As vast nuclear power programs of Italy for the treatment (separa- are revived around the globe, other tion of reusable materials before recycling plants are expected to recycling) of 235 metric tons of used take shape. In November, AREVA nuclear fuel. AREVA is negotia- and China National Nuclear Cor- ting with some large international poration (CNNC) agreed to carry power companies, which are also out joint feasibility studies for the expected to entrust their used fuel construction of a used fuel recyc- to the La Hague and Melox plants. ling plant. A month earlier, the US Department of Energy signed a contract with AREVA and its industrial partners in the International Nuclear Recycling Alliance (INRA), including Mitsubishi Heavy Indus- tries (MHI) and JNFL of Japan, and WGI, BWXT and Battelle of the United States. The objective:

Used fuel storage pool, 48 – AREVA 2007 La Hague plant (France). AREVA 2007 – 49 SOLUTIONS FOR CO 2-FREE POWER GENERATION AREVA, leader in recyclable energy

MOX, an increasingly widespread fuel Thirty years ago, France opted to recycle its nuclear fuel. This approach maximizes the energy potential of the used fuel. In fact, 96% of the fuel that supplied electricity for three to fi ve years consists of materials that are still reusable (95% uranium and 1% plutonium), which can be recycled into fresh mixed oxide fuel (MOX), a mixture of uranium and plutonium. The recycling process involves separating the fi nal waste from the reusable materials, which is done at the La Hague site, and then converting those materials into fuel in the Melox plant at Marcoule. Not only does this produce recycled fuel, it also reduces fi nal waste volumes by 80% and waste toxicity by 90%. Ten percent of France’s electricity is generated by MOX fuel. Worldwide, MOX currently represents 2% of the nuclear fuel used. This percentage will increase to 5% by 2010, according to the World Nuclear Association. The fuel could also be used in Generation IV reactors.

50 – AREVA 2007 MOX fuel rods. AREVA 2007 – 51 SOLUTIONS FOR RELIABLE Ensuring power ELECTRICITY TRANSMISSION grid reliability AND DISTRIBUTION

It is in India that power consumption will increase Supporting infrastructure the most by 2030, with average growth of 7% per year. development in emerging countries Over the next fi ve years, 31 billion dollars will be devoted to modernization of the Indian power grid. Europe, Asia, the Americas… Every- In Russia, where demand is mainly where one turns, the construction from industry, AREVA chose to part- INVESTMENTS of new electric power infrastructure ner with Rusal RC, the world leader is booming. The market is especially in aluminum, thereby becoming the dynamic in developing countries, preferred supplier to the Russian India, a base where demand for electricity is company with 500 million dollars in for the Middle East growing three times as fast as in orders anticipated over the next fi ve OECD countries. For example, each years. and Central Asia year China installs capacity equiva- In November, the group announced lent to France’s entire electric power that it was investing more than AREVA sited most of its new transmission and distribution production capacity generation. 20 million euros in new manufactur- in India in 2007. The T&D division will build AREVA’s Transmission & Distribu- ing lines at its center of competence three new plants there in the next two years tion division is participating actively in Aix-les-Bains, France. This project for high voltage transformers in Baroda, in this development. includes an ambitious hiring pro- transformer equipment in Hosur, and In 2007, it won two contracts, one for gram, with 120 new employees in additional production capacity for high 100 million and the other for 67 mil- 2008 expected to join the 720 peo- voltage disconnectors in Chennai. lion euros, in Saudi Arabia. The fi rst ple already employed at the site. These new units will join the group’s existing contract is for the construction of a In December, the division signed 8 manufacturing sites and 22 sales offi ces. high voltage substation and the refur- three contracts for a total of The division plans to invest 4 billion rupees bishment of 15 substations as part of 300 million euros with Gecol, the in India (about 70 million euros) over the next three years to serve markets in an industrial development project in state-owned electric utility of Libya, the Middle East and Central Asia while the Jubail region. The second is for to strengthen the country’s power meeting local demand. the construction of a high voltage grid. On January 14, 2008, AREVA’s gas-insulated substation for an au- T&D division was awarded the larg- tonomous power generation project est contract in its history by Kahra- in the Jizan region, in the south of the maa, the General Electricity and WORLD ELECTRICITY country. AREVA is installing local Water Corporation of Qatar. This SUPPLY AND DEMAND generating capacity and signing joint 500 million euro contract is part of (in tWh) venture agreements with strategic the program to expand Qatar’s partners to support the growth of electricity transmission system and 33,800 these markets. In April, the T&D includes the turnkey supply of 28,093 division inaugurated its fi fth site in 14 gas-insulated substations to demand China, a gas-insulated switchgear expand and strengthen the grid in supply manufacturing plant in Suzhou. the Doha region. 17,400 A month later, it signed agreements 14,376 to create a 50/50 joint venture with Sunten Electric. With this transaction, the group is set to become the 2004 2030 Chinese leader in dry transformers, Sunten’s specialty. Total energy consumption will increase 54% from 2004 to 2030. But world electricity consumption will double over the same period, as will power generation.

Source: Reference scenario of the International Energy Agency, World Energy Outlook 2007.

OSKF 550 transformers in a high voltage 52 – AREVA 2007 test lab in Shanghai (China). AREVA 2007 – 53 SOLUTIONS FOR RELIABLE ELECTRICITY TRANSMISSION AND DISTRIBUTION Ensuring power grid reliability

ULTRA HIGH VOLTAGE means developing “energy superhighways” Boosting external growth Fifteen electric capable of carrying more than 6 GW of power, the equivalent of four EPRs, over To remain a leader on the world mar- The other two acquisitions in 2007 superhighways hundreds or even thousands of kilometers ket for electricity transmission and were: on a single line. AREVA is ready to tackle distribution, estimated at 43 billion – Passoni & Villa, a world leader in planned in China this technological challenge. euros in 2006, AREVA is pursuing a high voltage bushings, in February. strategy of highly selective acquisi- This is a strategic acquisition for the tions and partnerships. It is target- division that helps ensure security RUSSIA ing companies located in strategic of supply on the very concentrated Ultra high voltage, countries and regions which round high voltage component market. scaled for the out its product portfolio or ensure Moreover, the company’s technolo- security of supply for the division’s gy expertise in the 800 kV segment Renewed key components. One such acquisi- supplements that of AREVA; MONGOLIA immensity of Asia Harbin tion was the Finnish company Noki- – VEI Power Distribution’s medium profi tability How does one deliver electricity from an Capacitors, in December 2007, voltage operations, in August. With Changchun The objective of the fi rst three-year plan Yining Ürümqi the coal-fi red power plants located near mines which strengthens the group’s posi- this acquisition, the group strength- Fushun for AREVA’s T&D division was to regain Shenyang in central China to the large urban centers tion on the booming energy quality ens its presence on the world mar- profi tability and achieve operating margins Baotou Hohhot of Guangdong and Shanghai, thousands market. The division will capitalize ket for electricity distribution and equivalent to those of its major competitors. Kashi of kilometers away? The answer is ultra high Yinchuan Beijing NORTH on the experience and know-how of becomes one of the leaders on this Shache This goal was met a year ahead of schedule, Tianjin voltage. This technology involves raising KOREA the Finnish company in the capaci- segment in Italy. Taiyuan Shijiazhuang in 2006. The number one goal now is Xining electric voltage to up to 800,000 volts in direct Tsingtao tor fi eld to supplement its offer and to set the standard for quality, innovative Lanzhou Jinan current, and to more than one million volts SOUTH in alternating current. broaden its customer base. solutions and price competitiveness in Zhengzhou Xi’an KOREA For several years, the T&D division’s research the eyes of large power producers. While Hefei Nanjing and development teams in Stafford (UK) manufacturing costs are constantly targeted Chengdu Wuhan Shanghai by all division units, maintaining technology Hangzhou and Villeurbanne (France) have been working Lhasa leadership and marketing excellence are Chongqing to develop equipment suited to this change NEPAL Nanchang equally important. As part of the continuous BHUTAN Changsha of scale. Some products are ready now, Guiyang but international standards for ultra high improvement initiative, the in-depth survey Kunming Fuzhou voltage must still be decided. of division customers conducted in 2007 INDIA BANGLADESH will be refl ected in new action plans. Guangdong TAIWAN And those standards are being written Nanning Hong Kong in China, where 15 superhighways for direct Macao MYANMAR LAOS current are planned.

THAILAND VIETNAM

CAMBODIA PHILIPPINES

Cities linked by ultra high voltage direct current: service date 2009: Yunnan – Guangdong 2016: Humeng – Tianjing 2011: Xiangliaba – Shanghai 2016: Jinsha River I – East China 2012: Jingping – East China 2018: Humeng – Liaoning 2014: Xiluodu – Hunan 2018: Jinsha River II – Fujian 2015: Humeng – Shandong 2018: Hami-Central China 2015: Nuozhadu – Guangdong 2019: Jinsha River II – East China 2015: Xiluodu – Hanzhou Source: AREVA. 2015: Irkutsk – Beijing* * China-Russia.

High voltage disconnectors in Itajubo (Brazil). 54 – AREVA 2007 AREVA 2007 – 55 With our leadership position comes responsibility. We know that nuclear power has a role to play in meeting the planet’s energy challenges. To be We will draw on our proven practices in the ﬁ elds of safety and quality to help meet them. Sustainable development is a rallying point for all of our and employees, backed by a tradition of thoroughness and risk management. To make this choice a reality, sustainable development is integrated into AREVA’s business strategy and management practices via to act a continuous improvement initiative: AREVA WAY GOVERNANCE IMPROVEMENT PERFORMANCE INNOVATION CUSTOMER SATISFACTION COMMITMENT TO EMPLOYEES ENVIRONMENTAL PROTECTION PREVENTION DIALOGUE INVOLVEMENT

AREVA 2007 – 57 1 GOVERNANCE

Respecting human rights, everywhere and at all times

OBJECTIVES AREVA’s commitment to governance Every year they must sign a letter decision-making. More than 350 managers the group is helping to develop and apply is founded on a set of rigorous ethical of compliance with the Charter, had completed the training as of the end practical tools within the scope of the AREVA attends Deploy an in-house e-learning program standards structured by its Values Charter, accompanied by an ethics report of 2007. BLIHR. AREVA took part in developing on ethics. the Global Compact which has been distributed to all of its on actions taken, any irregularities a more operational version of the BLIHR An e-learning program was set up Participate actively in the Business employees and brought to the attention encountered and the corrective measures matrix in 2007. This matrix defi nes the Leaders Summit Leaders Initiative on Human Rights to reach the greatest possible number of its suppliers. applied. The Charter is available in principles and actions to be instituted for (BLIHR) and in the French-speaking of employees. Armed with the success 13 languages. Since 2007, the annual each human rights topic, distinguishing As a board member of the United BLIHR section. of the pilot module, launched in the US Nations Global Compact since 2006, individual assessement interview has between what is essential and what goes in 2006 and completed by more than Anne Lauvergeon attended the Continue to integrate respect for Implementation of systematically included a section on beyond that. The group also supported human rights into our management 4,500 employees, an international version GC Leaders Summit held July 5-6, the Values Charter the Values Charter. the creation of a French-speaking system. was created, with British employees 2007 in Geneva chaired by corporate human rights working group Published in 2004, the Values Charter In parallel, AREVA has launched several its fi rst users. UN Secretary-General Ban Ki Moon. called Entreprises pour les droits de explains the group’s values, action actions focusing on ethics and values The summit brought together nearly UPCOMING MILESTONES l’homme (EDH). The 2007-2008 work principles and rules of conduct. The senior to mobilize employees and managers. 1,000 attendees from 90 countries Recommend the e-learning program has already been launched. to focus on “Facing Realties: managers, whether from the group, An international ethics awareness program AREVA, committed program on ethics to new engineers Getting Down to Business.” The subject its subsidiaries or its business units, are is a way of reminding them that ethics and managers in the group. to human rights In addition, AREVA actively supports of corporate social responsibility was responsible for implementing this Charter. must always be part and parcel of their the Extractive Industries Transparency much debated. Participate in events celebrating and environmental Initiative (EITI). Promoted by the G8 Anne Lauvergeon gave a speech on the 60 th anniversary of the Universal protection and bringing together governments, climate change and corporate Declaration of Human Rights, businesses and elements of civil society, environmental responsibility, and especially in coordination with The Values Charter places great emphasis on human rights and environmental this initiative reinforces transparency appealed to everyone to get involved. the BLIHR. She said “Environmental responsibility Employee ownership protection framed in terms of the group’s and good governance in countries rich is neither a marketing tool nor a Contribute to the completion of commitments and actions. In October in natural resources. The AREVA mining of company objectives: meaningless catchphrase for AREVA. the new “BLIHM matrix.” subsidiaries in Niger have been 2007, AREVA was asked to chair the It’s a conviction, a commitment, concrete a best practice executive committee of the Conference participating in the various committees processes and actions implemented Board’s Global Council on Business and sub-committees set up since 2007, at every level of our industrial and ANF, a German subsidiary of AREVA, produces nuclear fuel elements. It has set Conduct, which brings together about and the group’s local operating unit commercial activities.” up a process at its three sites in Duisburg, Karlstein and Lingen designed to help thirty multinational companies. in Kazakhstan is currently undergoing employees take ownership of the company’s objectives. Everyone is involved, AREVA is the only non-US member on EITI accreditation. AREVA’s business from the CEO to the plant operators. the committee. AREVA is also an active ethics advisor joined the EITI’s Once the business unit objectives have been defi ned, they are explained to the partner of the Business Leaders Initiative international steering committee operational personnel, who in turn defi ne their own objectives. These objectives at the end of 2007. are then rolled up via representatives to the department managers and middle on Human Rights (BLIHR), an association management before being presented to top management. of multinational companies that have The objectives must meet “SMART” quality criteria: Specifi c – Measurable – joined together to promote and urge Achievable – Relevant – Time-bound. They are published on the intranet, along respect for human rights in the workplace with progress to date, updated every quarter. This good business practice has and to facilitate their integration into proven very effective since it was launched in 2002. management systems. In addition to sharing its experience with others,

58 – AREVA 2007 AREVA 2007 – 59 CONTINUOUS 2 IMPROVEMENT

Carrying on Second AREVA Sustainable with the AREVA Way process Development Awards (ASDA) To encourage the group’s employees to get actively involved in its sustainable development initiative, AREVA holds its Sustainable Development Awards – ASDA – every two years. This competition rewards the projects and initiatives that best incorporate the economic, environmental and social pillars of sustainable development. For the fi rst time, the jury was opened in 2007 to well-known fi gures outside AREVA, who shared their positive impressions. « It was an ideal situation for me to be able to “peek under the hood” and see how AREVA is translating some of its principles into an operational format. OBJECTIVES AREVA’s continuous improvement Two drivers were rolled out in 2007 to AREVA is thoughtful and promotes discussions on these issues. » initiative is the daily, concrete, operational leverage AREVA Way’s impact. The group Continue to deploy AREVA Way Margaret Flaherty, WBCSD expression of the group’s strategic recently implemented a single software self-assessments at all group sites. commitment to sustainable development. program to manage all of its performance Increase the establishment of certifi ed Designed to be fully integrated into improvement activities. Fortifi ed by and integrated management systems the group’s management cycle, the experience gained by AREVA’s T&D (environmental, quality, occupational AREVA Way is a genuine sustainable division, where it has been used for more Revising the AREVA Way Targeted programs BIP Blog safety). development management system. than three years, the software is used model to build professionalism One of AREVA’s strengths lies in its ability Roll out a process for exchanging to report on action taken at every level of to pool its experience and turn it into best practices among all of the group’s The AREVA Way model is the backbone With its businesses booming, AREVA must opportunities for performance the organization to meet the group’s sites. A mature initiative for the continuous improvement initiative do everything it can to maintain a high improvement. That is what the “Best ideas performance improvement objectives. Adapt the AREVA Way model AREVA Way came of age in 2006 in terms and is structured around AREVA’s ten level of skills among its employees. and practices” (BIP) initiative is all about. to account for additional requirements of its deployment in the group’s New performance indicators were sustainable development commitments. The support functions, through which Launched in 2006 by the group’s experts, arising from the group’s policies. operational and functional entities. introduced in 2007. These new indicators By performing a self-assessment in each the group implements its policies, rely 73 BIPs have already been validated In 2007, the initiative covered more than supplement the traditional fi nancial entity based on this model, which contains on coordinators to apply them within each through this initiative and 29 more will be Audit the self-assessment process soon. Once the BIPs have been chosen, 85% of the group’s workforce. and extra-fi nancial performance 121 assessment criteria, the drivers for operational entity. Each entity has gone and make the results verifi able. data on each are entered into a database The process has been ongoing for four indicators, enabling corporate improving performance can be identifi ed beyond traditional training programs Launch Sustainable Generation groups that can be accessed by all employees and incorporated into performance to design an approach to skills-building in North America and Latin America. years, and in 2008 will focus on the management to ensure that each entity via the intranet. A blog-style interface commitments of customer satisfaction, has balanced performance in all three improvement plans. AREVA Way is both a in the form of a professional program allows employees to share their opinions governance, and fi nancial performance. fi elds of sustainable development. means for communicating the group’s specifi c to its challenges and organization. UPCOMING MILESTONES on these best practices and the general guidelines and a management In 2007, the Sustainable Development identifi cation process. Adapt the continuous improvement system. and Continuous Improvement department, The blog also acts as a valuable policy to AREVA’s ongoing industrial To remain consistent with the group’s in charge of quality, nuclear safety, go-between for employees looking for growth. policies and changes in its environment, occupational safety and the environment, ideas that are not in the database. AREVA Way self-assessment scores Set up a peer review process to make the model is revised every two years. In compiled its list of reference skills. Together, BIPs and Blog provide a vital service: they simplify the fi rst contact, it easier for line managers to share In percentage 2007, major content changes were made A total of 30 key jobs and 19 skills were leading to the replication of best practices experience on deployment of AREVA 46 45 in four fi elds: purchasing, marketing, identifi ed and described. The training 2004 43 from one site to next. Way. 2005 37 innovation and continuous improvement. requirements for a thousand engineers 33 2006 32 New subjects were also added, such as and managers all over the world were Build the professionalism of the 29 27 2007 continuous improvement network. 21 21 professional equality between men and identifi ed and special sessions were 17 17 women, design-to-cost, organizational developed and organized in several (1) Identify 100 new BIPs in 2008. 10 and human factors, etc. The revision countries, usually in partnership with 4 4 3 2 3 3 3 occupied more than 50 AREVA experts AREVA University. Not applied Level 1 Level 2 Level 3 Level 4 and required more than 1,600 working The Human Resources department played hours. In the end, 45% of the criteria were a key role in this process. More than The consolidated results of self-assessments (about 100 criteria graded on a scale modifi ed, a third of which were completely 35 training sessions lasting from one of 1 to 4 for AREVA’s ten sustainable development commitments) show that the best reworked. to fi ve days have been scheduled for practices endorsed by the AREVA Way model had reached a stage of structured 2008, with room for 10 to 20 people at deployment (score of 2 or more) in more than 80% of all cases. In more than a third each session. of the cases, the results revealed a positive local impact on the performance (1) Best ideas and practices. of the group’s entities (score of 3 or more).

60 – AREVA 2007 AREVA 2007 – 61 FINANCIAL 3 PERFORMANCE

Sustaining Chinese suppliers participate ﬁ nancial performance in AREVA training On December 17 and 18, 2007, twenty Chinese suppliers of AREVA’s T&D division participated in a training given in Shanghai by Environment department experts. This event is one way in which the group is supporting its suppliers for sustainable development and continuous improvement, particularly in the environmental area.

of sales, compared with 3.7% in 2006, investments include the Comurhex II As of December 31, 2007, the group had More suppliers OBJECTIVES New jump in fi nancial for 751 million euros in operating income. project to replace and upgrade production net debt of 1.954 billion euros, for a subscribe to AREVA’s Deploy the “Sustainable Development performance Operating margin from nuclear operations capacity in the chemistry business debt-equity ratio of 26%. Adjusted for Declaration for Suppliers” and perform rose to 6.8%, an increase of 2.5 points, and the new Georges Besse II enrichment the value of Siemens’ put option on its sustainable development audits of selected suppliers to verify AREVA’s growing backlog is evidence sustained by consistently positive plant, scheduled to start production in 2009. equity interest in AREVA NP, net debt rises performance. of the strength of its integrated model. commitment contributions from the Front End division In the Reactors and Services division, to 4.003 billion. The group is pursuing its objective AREVA’s “Sustainable Development 2012 fi nancial objectives and the improved profi tability of investments involved EPR certifi cation in Because it is strong fi nancially, AREVA for profi table growth against a backdrop Declaration for Suppliers” lays down the Sales of more than 20 billion euros. the Reactors and Services division. the United States and the United Kingdom. is able to fund the dismantling of its of nuclear revival that entails substantial group’s requirements concerning human Operating margin was down slightly in The group also strengthened its position nuclear sites. The group set up a 2.6 billion Double-digit operating margin. capital spending. rights, labor standards, health and safety, the Back End division. Operating income in the high-growth renewable energies euro provision backed by a portfolio of Largely positive free operating It is capitalizing on its unique position as nuclear safety, environmental protection for the T&D division doubled as the market with the acquisition of 51% of fi nancial assets totaling 2.9 billion euros cash fl ow. an integrated player in every stage of and community involvement. Suppliers successful multi-year optimization plan Multibrid, a German company specialized to maintain a coverage ratio that exceeds the nuclear cycle and has been rewarded are invited to subscribe to this initiative. delivered operating margin of 9.2% in offshore wind turbines. the requirements of the French Waste Law. UPCOMING MILESTONES with additional improvement in its As of the end of 2007, 69% of AREVA’s (compared with 6.7% in 2006); The Transmission & Distribution division Establish the operating excellence performance indicators: purchases by volume were made from – net income rose to 743 million euros, pursued its program of targeted initiative in group entities. – since the end of 2006, backlog has Operating excellence: participating companies, compared with risen 55.4% to the record level of almost up 14.4% from that of 2006. acquisitions to meet two objectives: round Incorporate lessons learned and a collective goal 46% in 2006. 40 billion euros at the end of 2007. out its portfolio of products and feedback from external stakeholders to To ensure that these practices are applied, technologies, particularly in ultra high The AREVA Way initiative urges every pursue the “Sustainable Development This performance refl ects in part the An ambitious capital the group is developing a method voltage, and increase its capacity in key one of the group’s entities to commit to Declaration for Suppliers” initiative. signature of a contract in November with to detect potential variances and, spending program regions, particularly China. a performance improvement program the Chinese utility CGNPC totaling 8 billion if necessary, to assist the supplier in its Implement the group’s strategic AREVA plans to continue its program balanced on the three pillars of euros – another record-breaker – with Looking ahead to market growth, AREVA performance improvement initiative. objectives and continue the of organic capital spending, in line with sustainable development. The plant sites 1 billion euros to go to local suppliers; embarked on an ambitious capital AREVA relies on dialogue with capital spending program needed its strategic objectives. Capital spending especially are concerned by all of the ten – sales are up 9.8% based on reported spending program several years ago, stakeholders brought together by to achieve them. is expected to climb to an average of commitments. To comply with them, they data, driven primarily by the Reactors particularly in the front end. A highlight of Comité 21 to ensure the success of approximately 2.2 billion euros per year can tap into policies defi ned at the group and Services division (+17.5%) and 2007 came with the 1.6 billion euros this initiative. the T&D division (+16.2%); acquisition of UraMin, a mining company over the 2008 to 2012 period. Targeted level that lay out the objectives and the – operating margin improved, to 6.3% established in Africa. Other signifi cant acquisitions meeting the strategic and means of achieving them. Financial fi nancial criteria may also be considered. performance, one of the ten commitments, rests in particular on effi cient production A strong balance sheet, tools and on meeting quality, cost, Lean manufacturing schedule and customer satisfaction Lean manufacturing consists of optimizing production based on methodical analysis foundation for growth criteria. Improving business and technical of tasks and workfl ows (added value or not, cycle time, etc.). This method requires AREVA’s growth requires a healthy processes by defi ning and sharing proven strong involvement by the production team to conduct analysis and search for ways fi nancial position, a vital asset in a capital- methods and best practices are identifi ed to prevent defects, overproduction, excess inventories, unnecessary transportation, intensive industry. Customers require drivers for achieving operating excellence. excessive processing and wait times. Identifi ed methods include lean The Melox plant’s Lean TPM project was instrumental in optimizing facility maintenance, guarantees so that they themselves may achieving a 60% reduction in maintenance hours, while making a substantial commit to large-scale projects spanning manufacturing, which seeks out and contribution to a 50% capacity increase at the existing facility from 2004 to 2006. long periods. systematically eliminates ineffi ciencies and measures the cost of non-quality.

62 – AREVA 2007 AREVA 2007 – 63 4 INNOVATION

Meeting the energy challenges AREVA engaged in important fuel cell work through its subsidiary Hélion of tomorrow Clean, silent and highly energy effi cient fuel cell technology is destined to become a key component of the future energy mix. The group plans to transform a technological reality into an industrial one, armed with technical successes that open up signifi cant prospects for commercial development in the fi elds of safety (back-up generators) and transportation. In early 2008, AREVA brought its experience to institutions of higher education in the form of a test bench and a full set of fuel cell educational materials developed jointly with the Institut Universitaire de Technologie and the École Polytechnique of Marseilles and with the École des Mines of Paris. OBJECTIVES One side of the equation for our planet’s minimize fi nal waste, increase energy energy future can be stated simply effi ciency, and guarantee system safety Broaden the renewable energies enough: rising demand together with and reliability – all while reducing costs. For AREVA, innovation means strategy. diminishing natural resources and too Increasing fuel burn-up is a way to meet industrial and commercial partnerships and pooling Expand eco-design practices many greenhouse gas emissions… these criteria. Burning nuclear fuel more The group’s Transmission & Distribution the necessary electric power. experience – sometimes with its But solving the equation is more complex, effi ciently increases the energy effi ciency to all new products. division is developing new equipment for AREVA has invested in a program that own competitors. because it involves connecting all the links of power plants and reduces waste Develop an eco-design plan these energy superhighways of the future, should lead to the best choice of in the energy chain, from generation production. for nuclear fuel based on lifecycle which will soon appear in China and India. electrolysis technology before 2011. analysis and R&D projects. to distribution. To help meet AREVA’s research teams are already these challenges, AREVA is mobilizing working on more effi cient fuel assemblies AREVA is working on safer, more effi cient innovation in every form. and reactors, and successfully so. A fuel CO -free electricity Partnered for 2 processes in the back end of the cycle assembly can deliver twice as much UPCOMING MILESTONE and even less waste as well. power today as it did 30 years ago. innovation with Pursue our innovation activities, In 2007, the group partnered with the CEA Safer, more effi cient The EPR will also contribute by boosting tomorrow without losing sight of customer to present a new concept for a treatment Mitsubishi Heavy energy effi ciency even more. It consumes The marketing phase for third generation requirements, focusing on electricity generation and recycling plant to co-extract and 15% less uranium for the same amount of reactors is now in full swing, yet already Industries partnerships, eco-design, mid to long co-convert uranium and plutonium. and transmission today electricity generated and can operate AREVA is working side-by-side with range planning, and information Instead of being treated separately, The group joined with Japanese reactor The AREVA group Research & Innovation entirely with mixed oxide fuel (MOX) the CEA in an international R&D program and communication technologies. the two elements are extracted and vendor MHI to develop a new range organization is shared by all subsidiaries, fabricated from recycled materials. on fast neutron reactors. By 2040, of mid-sized (1,100 MWe) Generation III+ converted together, thereby reinforcing providing a crosscutting vision that is vital In comparison, existing reactors can the program should produce a new pressurized water reactors. non-proliferation measures. to the design of new technologies meeting accommodate no more than 30% MOX. generation of reactors and related In December 2007, the partnership AREVA is ready to undertake immediate today’s energy and environmental With a higher load factor, the EPR is also treatment processes. These reactors between AREVA and MHI produced industrial development. Based on challenges: to conserve natural resources, more energy effi cient. will be capable of burning up nearly all their 50/50 joint company, ATMEA, customer requirements, the fi rst plants which is developing the ATMEA 1 reactor Great strides are being made in electricity of the uranium in the fuel rather than just are expected between 2015 and 2020. combining the nuclear technologies transmission and distribution as well. The the fi ssile portion, which represents only of both companies. goal is to transport more electricity more a few percent of the enriched uranium. Like the EPR, ATMEA 1 will feature reliably over increasingly complex supply This will drastically reduce the amount advanced safety systems and reduce systems. AREVA is developing intelligent of waste produced. For this program, fuel consumption and costs. An optimized certifi cation process power distribution tools for the network AREVA and the CEA are conducting joint With the combined experience of both Certifying, promoting and marketing a fl eet of standardized Generation III EPRs called “fl exible alternating current research on sodium-cooled fast neutron partners, ATMEA will be in a position in the United States: that is what UniStar, the joint company created by AREVA and production systems”, or Facts. Facts act reactors, especially concerning the safety to fi le a license application in record time electric utility Constellation Energy in 2006, has set out to do. in real time on variations in current of the fuel core. by the end of 2009. A partnership of this kind between a reactor constructor and its customer is highly traveling through the network, reducing For a hydrogen economy to become a unusual – and, in this case, effective! In December 2007, AREVA submitted its the risk of congestion and even blackouts. reality, a CO -free process will be required application for certifi cation to the US Nuclear Regulatory Commission (NRC), 2 AREVA is also working on very high to produce this clean energy carrier. which weighed in at a hefty 12,000 pages, including NRC recommendations. AREVA invested more than 200 million dollars in this project and mobilized a team voltage to transmit large quantities A very good solution would be to replace of 380 employees to be able to build new EPRs for the world’s largest nuclear of electricity over long distances the current process – catalytic reforming power program. to urban centers with a minimum of line of methane – with water electrolysis, losses. with nuclear power plants supplying

64 – AREVA 2007 AREVA 2007 – 65 CUSTOMER COMMITMENT 5 SATISFACTION 6 TO EMPLOYEES

Anticipating customer Being an attentive expectations and responsible employer

OBJECTIVES AREVA’s commercial policy is to build In 2007, the survey process continued OBJECTIVES AREVA’s labor policy is anchored trust through stable, long-term to evolve to reach more of our contacts AREVA trains in ongoing dialogue with employee Track the implementation of Formalize the group’s commitments relationships with its customers. among our customers. representatives. performance improvement actions South African to hiring the disabled for the next three Evaluations are regularly performed to For example, in France as in Europe emerging from customer surveys. The surveys have led to the establishment years. measure their level of satisfaction as engineers and generally, major aspects Revitalize the customer listening of several performance improvement precisely as possible. In doing so, the Implement the diversity indicator of working life, such as training, mobility process and reaffi rm our bias towards plans, while more than 500 local initiatives scorecard. group’s business units get a better grasp managers and professional development programs, the customer. and 5 cross-cutting projects were Obtain OHSAS 18001 certifi cation for of how the market is evolving and can AREVA has been a partner to are covered by contractual commitments. Defi ne and implement the action launched. respond to new requirements. the South African nuclear industry all sites with signifi cant environmental Every two years, AREVA conducts plan resulting from the T&D division’s for more than 20 years and is aspects (SEA) by the end of 2007. in-house surveys to gain a better grasp customer survey . Sharing a commitment participating actively in its Achieve an average frequency of employee expectations and opinions Continue to roll out innovative A structured process development. rate of < 3 for work-related accidents on their working conditions. The fi rst products, systems and services. for listening to sustainable In May 2007, the group and the and an average severity rate survey, conducted group-wide in 2006, University of Paris I Panthéon- of < 0.15 by 2010. had a participation rate of more than 70%. development with Sorbonne jointly inaugurated the UPCOMING MILESTONES to the customer Ensure that no employee is exposed The survey fi ndings, structured around “Project Leaders for South Africa” our customers to a dose of more than 20 mSv/year. AREVA’s 10 sustainable development Make the most of convergence on AREVA regularly conducts customer master’s program for South African In 2007, AREVA analyzed how its key sustainable development between satisfaction surveys. The survey method is engineers and managers. commitments, served as a basis for AREVA and its customers. constantly being enriched and adapted to customers incorporate sustainable This novel program, conducted by UPCOMING MILESTONES managers to defi ne action plans in each suit the needs of the business units. Close development into their business strategy AREVA University, includes a Continue to recruit, integrate and entity. Expand the coverage of customer to a thousand interviews covering all of the and stakeholder communications. semester of courses, team develop employees to keep pace with satisfaction surveys by increasing group’s operations were conducted from The objective was to gain a better projects, and a fi ve-month growth and demographic renewal. the number of interviewees. 2003 to 2007. understanding of their level of involvement internship in a French or European More than one person Facilitate the integration and continued in sustainable development and identify company. employment of workers with limited hired every hour areas of potential convergence between An executive of the AREVA group is assigned as mentor to each abilities. To be equal to strong market growth their initiatives and those of AREVA. and the demographic challenges this student and provides support Expand the EOS 2008 survey to include Commercial success The results revealed just how seriously our presents, the group has launched throughout the program. all group employees worldwide. customers take sustainable development. After graduating, the program an ambitious recruitment program. through long-standing relationships Several of them have even received participants will bring their skills Shorten the 2010 deadline for accident More than 11,500 people joined the group In June 2007, AREVA and the South Korean electric utility KHNP – one of the four awards in this fi eld. Energy effi ciency to South African companies and frequency and severity rate objectives in 2007 – that is more than one new leading nuclear power generators worldwide, with a fl eet of 20 reactors – signed in particular is one of their key concerns, administrations. by 18 months. employee every hour – a third of whom are a uranium enrichment contract for more than 20 years and valued at more than As underscored by Mrs Mjoli- with many increasingly moving into low Roll out the health policy established engineers and managers and 21% 1 billion euros. Both the quality of relations between AREVA and KHNP since the Mncube, economic advisor to the carbon and renewable energies. of whom are women (compared with 19% early 1980s and the constant commercial presence and contact with Korean vice president of South Africa, “this in 2007. Their strong dedication to meeting in 2006). The group has taken a series nuclear players – despite the limited amount of business – were instrumental educational program contributes Demonstrate our ability to limit employee stakeholder expectations is based on of actions to attract top candidates. in winning this major contract. The group won over the customer through to the fi ght against poverty and exposure to 20 mSv/year. the competitiveness of its proposal and guarantees concerning the long-term values and commitments that are close to development, not just in South In France, to strengthen its ties with higher reliability of its production resources, particularly with the near-term startup to those of AREVA. Africa, but all across the continent.” education, a hundred “ambassador” of the Georges-Besse II enrichment plant, in response to KHNP’s desire to employees were tasked with maintaining diversify its long-term sources of supply. regular relations with their alma maters.

66 – AREVA 2007 AREVA 2007 – 67 COMMITMENT 6 TO EMPLOYEES

Promoting road safety Safety does not end at the doors of the group’s plants and ofﬁ ces. To raise employee awareness of road hazards while commuting to work or traveling on business, AREVA conducted an information campaign covering the elementary rules for driving safety. A whole set of tools in 12 languages – display panels, posters, stickers, etc. – was provided to safety coordinators and managers. Local employee representatives and health services took part in this initiative.

This dynamic recruitment program is Two thousand individual training requests The obsession The highest level being implemented in countries in which were submitted in 2007, three times more the group is based, which are than in the previous year. for occupational of radiation protection experiencing strong growth. In India, for 11,514 The AREVA Job Institute was also created safety The group’s operations require careful example, the T&D division entered into to develop professional development attention to radiation protection. For AREVA, occupational safety is an partnerships with eight major technology new hires paths in the areas of processes, services, In France, new regulations issued in 2007 ever-present concern, whether for its own institutes. The use of innovative tools is engineering and maintenance. were implemented rapidly and in a in 2007 employees or those of its subcontractors. also on the agenda. In June 2007, AREVA coordinated manner at AREVA plants Our goal does not change: zero accident. participated in the fi rst European online and sites. Health: going well In 2007, the group achieved an average job fair on Second Life. The group applies the 20 mSv limit accident frequency rate of 3.55, All of these initiatives are bearing fruit. beyond the regulatory in every country in which it is based, two and half times less than in 2003. Students at France’s top engineering even when local regulations tolerate requirements Even though the severity rate for 2010 schools rank the group fi fth as a preferred higher doses. AREVA’s radiation The health program’s three priorities has already been achieved and even employer. protection managers meet regularly to for the 2008-2011 period go well beyond exceeded, events in 2007 provide a facilitate implementation of this policy. the regulatory requirements in formalizing sobering incentive to intensify efforts. AREVA has also demonstrated its ability the group’s health commitments and Last year, the group sadly reported six Diversity, to achieve a steady reduction of exposure defi ning ways of measuring performance. fatal accidents among its subcontractors’ advantage of these opportunities. to its employees and those of its a corporate asset The fi rst priority is employee exposure employees. Audits and action plans An equivalent number of coaches were subcontractors. Although the 20 mSV AREVA knows that diversity is an asset to to noise, hazardous chemicals, have been implemented to strengthen trained to support these young people level was exceeded for 13 workers Striking the company and has made it a key and ionizing and non-ionizing radiation. risk identifi cation and management. from a variety of backgrounds. of a newly acquired subsidiary, the local component of its human resources policy. Performance improvement actions are In the knowledge that any occupational a balance regulations were nonetheless respected. Close attention is paid to employment of aligned with the world’s most stringent safety policy must be supported By strengthening their information between work the disabled, among others. In France, Training, a springboard regulations. A second priority relates and promoted at the highest level of processes, newly acquired companies AREVA signed a three-year agreement in to deployment of health programs linked the company to be truly effective, for professional are expected to adopt group practices and personal 2007 with quantifi ed commitments for its to local public health issues, particularly AREVA University has set up a safety more quickly. sites, such as 90 jobs and 90 internships development the fi ght against HIV/AIDS, a fi eld in which management training program for life for the disabled. Career development plans are defi ned the group is heavily involved. executives. AREVA provides a wide range Each site has designated an employee during the annual employee interview. The third priority aims to improve working New initiatives were taken in 2008, of personal services to its champion for the disabled to spearhead Training programs aim, among other conditions. Part of this involves giving particularly with regard to preventing employees, including daycare these actions. Echoing this program, things, at encouraging employees to take personal attention to individuals in risks related to human and organizational centers, sports facilities and AREVA’s purchasing policy favors the use charge of their development and at diffi culty and keeping them employed. factors. concierge services (dry cleaning, of sheltered companies. In the fi eld of creating professional development paths. Detailed performance indicators will be babysitting, help with school…). The fi rst daycare center was gender equality, AREVA targets equal pay These paths represent a more strategic used to measure the effectiveness inaugurated in 2002. in all of its hiring. AREVA uses work-study distribution of the 900,000 hours of of this program, with an application guide Today there are seven of them, at opportunities to leverage its diversity training provided by the group each year. soon to be available for all AREVA sites. the group’s new Paris headquarters, policy and promote equal opportunity. An effort was made to provide more The health network was defi ned in 2007 at several locations in the Paris In 2007, some 1,000 people representing information to employees about the and will be deployed operationally area, elsewhere in France, 3% of the permanent workforce took training opportunities available to them. beginning in 2008. and in Erlangen, Germany.

68 – AREVA 2007 AREVA 2007 – 69 ENVIRONMENTAL 7 PROTECTION

Shrinking our environmental footprint

AREVA’S SHRINKING ENVIRONMENTAL ■ Baseline 2004 FOOTPRINT, 2004-2007 (at constant sales) ■ Achieved 2005 ■ Achieved 2006 Paper –37% ■ Achieved 2007 100%

80% OBJECTIVES AREVA is reducing its environmental non-nuclear sites. New SEA sites have to Committed to carbon footprint year after year using tools and obtain such certifi cation within three years. Set performance improvement 60% action to control the impacts of its All industrial SEA sites – including neutrality objectives for radioactive waste Non-recycled operations. Because the stakes linked to licensed nuclear facilities and mine sites – AREVA is the fi rst major industrial group to 40% management. GHG conventional climate change, biodiversity preservation are expected to have carried out specifi c achieve carbon neutrality in its operations. Implement the 2007-2010 –39% 20% waste and sustainable management of natural soil management actions before 2011. To accomplish this, it combined a environmental policy. –39% resources are getting higher, the group is Launched in 2007, this initiative includes far-reaching multi-year program to reduce 0% Continue to set up environmental reinforcing its commitment in those areas. subsoil diagnostics, updating reports and, its own greenhouse gas (GHG) emissions management systems (EMS). As of the end of 2007, 82% of the sites if necessary, setting up a plan to monitor (less than 1 million metric tons of CO 2 Carry out 50 environmental reviews. with signifi cant environmental aspects environmental liabilities and manage them equivalent emitted in 2007) and voluntarily Examine the soil management (SEA) were ISO 14001 certifi ed, including over the long term. offset its residual emissions. For the offset, component in more detail. 100% of the nuclear sites and 74% of the the group joined with Eco-Act to acquire Reduce our environmental footprint, carbon credits for the 2008-2010 period. focusing on major contributors. The partnership’s goal is to choose and Continue efforts to limit greenhouse support low CO 2-emitting economic Water –34% Energy –18% gas emissions. development projects, mainly in countries in which AREVA does business. The projects should have a strong social UPCOMING MILESTONES Water Energy Greenhouse gases focus, e.g. building cold storage (GHG) Deploy the 2008-2011 environmental The main driver for Most of the gains came warehouses without power units in Niger program. performance improvement from eco-effi ciency The drop in the group’s or providing Brazilian industries with was the adoption of a diagnostics and action emissions in 2007 was Obtain ISO 14001 certifi cation biomass equipment. closed-loop cooling system plans. At the Eurodif mainly due to the elimination for all new sites with signifi cant that practically eliminates site in France, natural gas of SF 6 releases from the environmental aspects (SEA) within water tapping in the consumption dropped uranium chemistry facilities three years of acquiring them. Sharing a culture environment. The operation 90% by making two major by changing the treatment Carry out 80 environmental of environmental reduced water changes to site utility process for fl uorine vented assessments in 2008. consumption by 36% management. by the facilities. Update site performance improvement stewardship at the Comurhex Malvési A plan going into effect in plans. The Environment network’s training uranium conversion 2008 will drastically reduce site in France. N O releases at the Malvési program has two goals: build 2 Continue to reduce SF 6, N 2O and site. As a result, almost no professionalism within the network and CO 2 emissions in compliance with the more greenhouse gases carbon neutrality commitment. Mine reclamation at Cluff Lake create a shared culture of environmental linked directly to the Set up a standard environmental stewardship. In 2007, specialists from processes will be emitted by The Cluff Lake uranium deposit in the Canadian province of Saskatchewan ceased liabilities management plan. the Environment department coordinated the nuclear cycle operations. production at the end of 2002. Mill dismantling and site reclamation began after topical training meetings on the major Propose uses for recyclable materials an environmental assessment, public debates and regulatory inspections. environmental issues of the 21 st century in the nuclear industry. Project Manager Gerry Acott used the image of the trapper to illustrate the spirit and on AREVA’s commitment in of the project: “He was here before us, lived on the site throughout the mining operations and will be here when we leave. We want to leave a safe site for the sake that regard. 75 people attended the of the site itself, for future populations, and for wildlife.” The rehabilitation work, meetings, which took place in fi ve sessions which included demolition of the plant, covering the tailings and replanting the area worldwide: two in France, one in Frankfurt, with local vegetation, is now over. Rehabilitation was planned from the beginning of Germany, one in Charleroi, USA, and one in the project, which stands as a model of its kind. Shanghai, China.

70 – AREVA 2007 AREVA 2007 – 71 ENVIRONMENTAL RISK MANAGEMENT 7 PROTECTION 8 AND PREVENTION

Anticipating risks

Managing radioactive Keeping radiological OBJECTIVES Before risk can be managed, it must fi rst of ensuring that safety requirements are The Concord be identifi ed and characterized at all taken into account correctly and applied. Test the application of additional waste impacts as low as of the group’s sites using proven methods. Two areas for improvement emerge from site cuts down indicators for safety performance. For comprehensive management of its The actions taken comply with the ALARA these inspections: the strengthening reasonably achievable Distribute the handbook for human on ether use radioactive waste, the group uses a principle (as low as reasonably achievable), of training on safety and human and factors integration and assess the reporting system that includes the different As part of its continuous improvement taking economic and social factors into organizational factors, and the expansion In Canada, Canberra Concord potential for extending it to other fi elds. waste management methods and the initiative, the group set goals to keep account. of experience sharing. A total of 81 events manufactures radio assay equipment Deploy event analysis training such as radiation detectors and status of the facilities (in operation or radiological impacts as low as reasonably were reported in 2007. On the International integrating the human factors walk-through detectors for employee undergoing dismantling). For example, it achievable and to expand harmonization Nuclear Event Scale (INES), 64 were component. Optimizing the radiation protection. Manufacturing tracks legacy waste retrieval and of the radiological impact assessment ranked level 0 and 17 were ranked level 1, this type of equipment requires packaging programs, and waste from models to all sites with radioactive Strengthen knowledge of national application of safety including 4 that actually occurred in 2006. the use of highly fl ammable, toxic facility operations or dismantling. releases. Specifi cally, at 0.01 mSv, safety regulations in countries in which requirements The number of incidents was stable and ether to clean the copper The group has invested at several sites to the annual radiological impact of the AREVA does business. none were ranked as level 2. The 40 site inspections performed in 2007 components. Canberra partnered improve radioactive waste storage and La Hague site on the surrounding Complete deployment of simplifi ed with its supplier to identify a were based on 4 topics: fi re hazard packaging and to prepare for the removal populations is only one-fi fth of what it was risk assessments and health hazards substitute cleaner that not only has control, criticality control, safety while of dismantling waste from ongoing and 30 years ago. This is much lower than assessments at SEA sites. Human and excellent cleaning properties, but is performing services in customer facilities, future work sites. Several large-scale the regulatory limit of 1 mSv/year, which organizational factors non-fl ammable, much less toxic, and radioactive waste and effl uent operations are in progress, including: is the equivalent of one day of exposure UPCOMING MILESTONES and usable in an automatic cleaning management. The inspections revealed a integration – the construction of a building in 2007 to to the region’s natural radioactivity. Deploy the additional indicators for machine as well. Changing cleaners strong point shared by all: the organization To err is human, and humans are fallible… and automating the process has retrieve and process radium-bearing waste The assessment models used at La Hague safety performance tested in 2007. and practices of the entities are capable but they are also necessary to the process reduced the fi re risk and employee at the Cezus Jarrie site; were extended to the group’s other major Deploy the human and organizational exposure to toxic products. – the decontamination and recycling in nuclear sites, taking specifi c local factors initiative throughout the group. The new cleaner is also recyclable, 2007 of 400 metric tons of contaminated characteristics such as life styles and Support risk assessment initiatives compensating for its higher cost. consumption habits into account. lead in new nuclear facilities at the at SEA sites. Moreover, with the automated Marcoule site; The impacts there are also very low, Human factors integration process, the cleaning operation Revise hazards studies to comply with – a feasibility study concluded in at less than 0.01 mSv. takes only half as much time. regulatory changes. in the United States December 2007 on the project to dismantle Radiological impact assessments are the Eurodif plant at the Pierrelatte site supplemented by environmental The group’s nuclear fuel fabrication business in the United States, Fuel America, during the 2013-2015 time frame; radioactivity monitoring. AREVA takes sought to understand the root causes of quality and safety problems so as to take corrective action at the appropriate line level. Launched in 2003, its Human – optimized treatment of very low level some 100,000 samples at 1,000 locations Performance initiative focuses on individual and collective performance. It is one waste at the La Hague site before shipment for analysis every year. The analytical of the group’s most advanced initiatives on the subject today. The initiative involves to the Andra disposal facility. results are published on the group’s employing human error indicators, measuring performance improvement, and The group’s sites received certifi cates of websites and shared with local comparing its results with those of other organizations to pinpoint performance acceptance to the Andra very low level stakeholders. Reconfi guration of storage improvement opportunities. The results are encouraging: the human error rate waste disposal facility, allowing many areas to limit the radiation exposure dropped 50%, performance improved noticeably and clear areas for improvement shipments of a variety of waste. at the site boundary, begun in 2005, in terms of working conditions and organization emerged. The key to success has was completed in 2007. been the involvement of managers, who coordinate the program and determine the action to be taken and training content. The initiative is even more exemplary for its approach, organization and results than for its originality.

72 – AREVA 2007 AREVA 2007 – 73 RISK MANAGEMENT DIALOGUE AND 8 AND PREVENTION 9 CONSENSUS BUILDING

Building relationships of trust with stakeholders

The 90 reviews performed in 2007 OBJECTIVES AREVA has always considered it important identifi ed best practices for risk reduction to maintain dialogue with its stakeholders Dialogue Report on the information exchanged Managing fi re hazards, linked to the disposal of hazardous so as to understand and integrate their during the second Stakeholders to strengthen materials. Reviews are performed expectations into its strategy and answer an obligation for AREVA Session, improve the process, at least every three years for sites with and expand the initiative to other questions raised by its operations. knowledge An uncontrolled fi re can lead to the dissemination of hazardous materials. signifi cant environmental aspects (SEA) regions. AREVA sites are exposed mainly to the risk of electrical fi res or fi res caused by and once a year for Seveso, nuclear of the group’s fl ammable liquids or pyrophoric metals. The group’s goal is to prevent any fi res Continue the practice of solicited Mapping of local and mining sites. from starting and, in the case of incipient fi re, to limit its spread and ratings. stakeholders taken operations consequences. AREVA worked with Andra, the CEA and EDF to develop a Fire Continue to deploy stakeholder In view of the nuclear revival in the Prevention Guide that includes a risk analysis method. As part of R&D work mapping. to the international United States and to meet growing on electrical cabinet fi res conducted with the French radiation protection Implement “dialogue action plans” level recruitment needs in the western part and nuclear safety institute IRSN, tests were performed to optimize the use at the local level. of the country, AREVA developed of ventilation in buildings on fi re. The tests took place in a station with three halls In 2003, AREVA developed a mapping relations with the farming community and a corridor resembling those of a nuclear facility. Based on previous studies methodology for local external of Sunnyside Washington, population on fi res due to solvents, the La Hague site developed a strategy to manage UPCOMING MILESTONES stakeholders to help the sites compare 15,000, near the Richland site. the ventilation in buildings where solvents might catch fi re. Update local stakeholder mapping their perceptions of local stakeholder Working closely with the teachers performed at least three years ago. expectations with their real expectations. of Sunnyside High School, the group Continue to implement “dialogue Priority was given to the major nuclear is identifying students with a clear action plans” at all sites and monitor sites and sites regulated under interest in the nuclear industry. Seveso laws. AREVA gave a comprehensive of managing risk. This is the challenge and specialist staff put their heads their progress. In 2007, local stakeholder mapping overview of its operations and of human factors integration: taking this together to come up with a human factors Hold a third Stakeholders Session arranged a tour of the Richland was deployed on an international scale duality into account to reduce errors and integration project for AREVA that builds with the group’s stakeholders. manufacturing facilities and meetings and then broadened to include sites make the most of human capabilities on the group’s lessons learned, Set up health observatories around with employees in various job that carry signifi cant economic weight. to anticipate and correct situations. to be rolled out in the operating entities the main mining sites, beginning categories to help these students Five new sites took part in this exercise, First and foremost, this requires in 2008. with Niger and Gabon, before the end identify job opportunities in the one in the US, two in Canada and two in understanding and taking into account of 2008. nuclear industry and gain a better Germany. four performance factors: individuals, understanding of what the jobs Environmental reviews In all, almost 280 stakeholders from some are all about. ergonomics, interactions within the team 20 of the group’s sites in France, Britain, and cultural and organizational factors. as a barometer Germany, Canada and the US were The anomalies then need to be corrected The purpose of environmental reviews interviewed by an independent expert. at the right level of management, is to assess the level of performance and The stakeholder maps were used to and risk situations improved for quality, maturity of site environmental practices. develop “dialogue action plans” that will occupational safety, nuclear safety, They are based partly on documentation be examined regularly by the group’s health, and environmental protection. reviews and partly on observations in sustainable development teams. Above all, managers must create the fi eld. A site’s major risks will determine the conditions that will help to change the specifi c topics covered during the site attitudes (personal involvement, making visit. Each environmental review leads use of social skills within the organization). to a report identifying the site’s strengths Line managers, corporate managers and weaknesses.

74 – AREVA 2007 AREVA 2007 – 75 DIALOGUE AND COMMUNITY 9 CONSENSUS BUILDING 10 INVOLVEMENT

Supporting development in communities where the group does business

Cleanup BU assessed An intranet site devoted OBJECTIVES Taking action on AREVA’s responsibility and enterprise project support. In 2007, to society goes beyond the traditional AREVA took part in creating a new Continue humanitarian aid activities, Established by VIGEO to dialogue and borders of its industrial operations. enterprise park in Saint-Dizier, France, with greater employee involvement. AREVA asked VIGEO to conduct a second Over and above its economic infl uence, centered on the energy sector, which will health consensus building Increase the internationalization solicited rating to assess the Cleanup the group’s community involvement policy ultimately create 100 jobs. Two other parks Launched in 2007, this intranet site gives of projects. observatories business unit’s level of social responsibility. makes it an important element in all in which the group is involved, Le Creusot the group’s sites and plants information Inform the public about the activities The fi rst rating targeted the uranium aspects of local development. (600 jobs) and Pontarlier (200 jobs), and practical advice to formalize and of the AREVA Corporate Foundation. near the mine mining business. The audit measured are completely full and have achieved improve the organization of dialogue with the level of social responsibility in four economic stability. New projects in Mâcon sites local external stakeholders. Numerous An engine for economic fi elds: human resources, human rights, UPCOMING MILESTONES and Cherbourg are under review. In 2007, under the aegis of tools are provided, such as examples the environment, and market performance. Involve employees in sponsorship development The group continues to be an active the national authorities and with of best practices and action plans, as well On a scale of 1 to 4, with 4 being programs supported by the AREVA supporter of local economic development the participation of scientifi c as contextual information on stakeholder The mission of AREVADELFI, the group’s the highest level and refl ecting “advanced Corporate Foundation. near the deep disposal laboratory for organizations and NGOs, AREVA relations, etc. A methodology for risk capital company, is to support commitment,” the Cleanup business radioactive waste in Bure, France. proposed to create health stakeholder mapping, based on maps Continue to internationalize projects economic development in regions in which was given a rating of between 2 and 3, In 2007, it completed the construction observatories near the mine sites developed previously for about twenty of in line with the consolidated group’s the group conducts business. Ever since it operates or has operated. depending on the fi eld. This rating gave of its national archive center in the group’s plant sites, is available to sites new borders. it was established in 1998, AREVADELFI The fi rst two units are being the Cleanup business unit a clear idea Houdelaincourt, where 10 permanent and plants that need to identify and quickly Support a dozen large-scale has invested some 10 million euros to help established in Niger and Gabon, of the improvements still to be made. get more than 100 projects off the ground, jobs were created. and are expected to be completed describe their key local contacts. development projects, in terms of jobs, representing a total of 2,295 jobs. before the end of 2008. via AREVADELFI. In 2007, AREVADELFI focused on Creation of the AREVA The objective is to provide medical Provide economic development care to former employees of technology and innovation projects in support in departments hosting the regions where it had not yet been Corporate Foundation the mines, in compliance with Bure disposal site in France. French regulations, to record involved. Of the 70 projects reviewed, AREVA has always had a policy of any pathologies, and to launch 16 were selected, leading to the creation sponsorship in three areas, identifi ed epidemiological studies of 400 jobs. The competitiveness clusters through consultation with its employees: if necessary. To meet public and created by the French government in North/South development, knowledge stakeholder expectations, the group 2006 constitute regional development sharing, and energy and climate change. hopes to expand this health tools for industry. AREVA heads up two In 2007, the group set up a corporate monitoring program to all of of them: the nuclear cluster of Burgundy, foundation, to anchor this policy. the mines it operates around in the Saône-et-Loire department, and By creating the foundation, AREVA offers the world, particularly in Canada its employees the opportunity to get and Kazakhstan. the Trimatec cluster in the Rhone Valley. Within this framework, research and involved in a variety of humanitarian development programs have been set up programs on a volunteer basis. and bring the group together with small The programs must be in line with the and mid-sized local businesses, to the foundation’s areas for action: access to

mutual beneﬁ t of both sides. AREVA has education, health, and CO 2-free energy. become a champion for enterprise park In 2007, the Foundation supported several initiatives that provide business premises ﬂ agship projects: operation of “Green

76 – AREVA 2007 AREVA 2007 – 77 COMMUNITY Auditors’ report 10 INVOLVEMENT on selected environmental, social and safety indicators for 2007

The AREVA Foundation also supports At the request of the AREVA group and The work performed for the data Radioécologique Nord-Cotentin in its programs to combat HIV/AIDS among in our capacity as the group’s statutory identifi ed by the symbol enable us January 2007 report related in particular destitute populations in South Africa. auditors, we performed a review aimed to express a moderate level of assurance to the methodology for calculating the at providing: for the selected entities; the work data (1) . A “green coal” machine • a reasonable level of assurance on the performed on the data identifi ed by • We performed interviews at the “Direct greenhouse gas emissions” the symbol is more extensive and Sustainable Development and in South Africa indicator identifi ed by the symbol enables us to express for the fi rst year Continuous Improvement department, Since 2004, AREVA has been working in in the table on page 83 for fi scal year a reasonable level of assurance. the Environment department, partnership with the NGO Pro Natura to 2007; and • We assessed the procedures for the Health and Safety department, develop an industrial process to produce • a moderate level of assurance on the reporting and measuring the Human Resources department, “green coal.” The goal is to design a 11 environmental, social and safety environmental, social and safety and in 12 selected entities (2) with the production-scale machine to convert performance indicators (“the data”) indicators with regard to their persons involved in the application of agricultural waste or renewable biomass selected by the AREVA group and relevance, reliability, neutrality, the procedures. A solar-powered school into briquettes of “green coal” that can be identifi ed by the symbol in the table understandability and completeness. • We performed tests on the application used like charcoal. Teams from AREVA on page 83 for fi scal year 2007. Regarding the radiological impact of of the procedures based on a sample in the Himalayas and the South African company NESCA These data, which are the responsibility the La Hague site, we based our work of 10 sites (3) accounting for 6% to 53% The AREVA Corporate Foundation is taking action in favor of child education. cooperated on developing the machine, of the Sustainable Development and on the opinion expressed by the Groupe of the group’s consolidated data. It is providing support for the construction of a solar-powered school in the for which a prototype was successfully Continuous Improvement department, Himalayas, a project led by the “Tisser la Paix” (“Weaving Peace”) association. produced in 2007. An 18-month trial phase were prepared in accordance with internal Environmental indicators procedures for measuring and reporting The school is located in the Nubra Valley, a dry, mountainous region where began in 2008. Several companies have Water consumption 22% Quantity of hazardous 6% Energy consumption 37% minimum temperatures range from –20° C to –35° C in the winter. But an average already confi rmed their interest in the sustainable development and continuous (excluding cooling water) and non-hazardous waste (excluding Eurodif) of 300 days of sunshine per year means that the school can be heated with solar machine, capable of producing improvement indicators, available for (m 3) (MT) (MWh) energy. As a result, 250 children will be schooled during the winter months, consultation at the Sustainable economical and environmentally friendly Direct greenhouse 53% VOC emissions (MT) 11% leaving them free during the three summer months to help their parents. Development and Continuous energy for 15,000 homes. This project gas emissions Improvement department and on the opens broad perspectives for access to (MT of CO 2 equivalent) energy by the people of developing group’s website. The reporting procedure described on page 81 explains the Santa Clauses,” a project organized by the awareness raising campaign launched in countries. Safety indicators reporting methodologies related to the Secours populaire, the fi ght against 2006 continued, supported by the group’s Number of accidents with lost 16% Total individual external doses to group employees 12% data used to calculate the published exclusion and illiteracy in the shantytowns health network. In the Ivory Coast and time for subcontractor personnel from occupational exposure to radiation (man-mSv) indicators, most notably the indicators of São Paulo, construction of a solar- India, HIV/AIDS evaluation campaigns relating to the radiation exposure and the powered school in the Himalayas, a micro- were conducted at the group’s sites and Social indicators radiological impact at the La Hague site. credit program to allow rural populations gave rise to a series of recommendations. It is our responsibility to express a Total hours worked 14% Employees as of December 31 13% in China to acquire renewable energies… In Niger, AREVA started implementing the conclusion on the selected data based to mention but a few. triennial agreement to prevent AIDS and on our review. The conclusions • We tested the calculations on a sample To assist us in conducting our work, provide care for its victims signed with formulated hereafter relate to these data basis and verifi ed the reporting we referred to the environmental the government and the public interest alone and not to the entire sustainable of data by the selected entities and and sustainable development experts New initiatives to fi ght group Esther. With the latter’s support, development report. at various consolidation levels. of our fi rm. AIDS 122 people infected with HIV had been AREVA has been committed to the fi ght treated at the Agadez regional hospital (1) “ Appréciation par le GRNC de l’estimation faite par AREVA NC des doses auxquelles la population a été exposée du fait Nature and scope of work de l’activité exercée sur le site de La Hague au cours de l’année 2005.” against AIDS for several years. Further center as of the end of 2007. We performed the following procedures (2) Mining, Chemistry, Enrichment, Equipment, AREVA TA, Treatment, Logistics, Recycling, Systems, Products, Services action was initiated in 2007. In China, a The agreement constitutes the fi rst and Automation business units. campaign to prevent AIDS was conducted co-investment program in the world signed in order to provide an assurance that the (3) Mining BU (Katco site in Kazakhstan), Chemistry BU (Comurhex Malvési and Comurhex Pierrelatte sites in France), selected data do not contain any material Enrichment BU (Socatri site in France), Equipment BU (Saint-Marcel site in France), AREVA TA BU (TA Cadarache site among employees at the Suzhou and between an African government and in France), Treatment BU (AREVA NC La Hague site in France), Logistics BU (LMC site in France), Recycling BU Shanghai sites. In France, an in-house a large private group. misstatements. (Melox site in France), Products BU and Services product line (Gebze site in Turkey).

78 – AREVA 2007 AREVA 2007 – 79 Auditors’ report Reporting methodology on selected environmental, social and safety indicators for 2007

Observations • the application of the data verifi cations Conclusion The indicators published in this report The full consolidation method is used (data This procedure is provided to anyone, on the procedures provided in the reporting tool should be Reasonable assurance are used to measure the main from majority-owned subsidiaries is fully at any level, involved in developing and In 2007, the group continued to strengthened at the level of the business In our opinion, the data identifi ed by impacts and sustainable development consolidated). reporting data; it is updated in the fi rst improve the reliability of the data units and professional experts, as well as the symbol were prepared, in challenges associated with the By “operations”, we mean the operations of quarter of the year and may be operations of the AREVA group. reporting process. In particular, AREVA at certain sites; all material respects, in accordance all industrial sites and offi ce building sites consulted on the group’s website, These indicators were developed by with a surface area of more than 1,000 m 2 www.areva.com . included new entities (corporate • the defi nition of the “volatile organic with the above-mentioned reporting a group of experts representing our subject to sustainable development The reporting procedure was not entities and marketing and sales compounds (VOC) emissions” indicator criteria. different businesses and departments, reporting. modifi ed in 2007 compared with 2006. entities of the T&D division) in the must be clarifi ed in the reporting Moderate assurance and refl ect, in particular, GRI (1) and Beginning with 2007 reporting, offi ce The previously reported fi gures for 2006 reporting process and further raised procedures to enable the group’s sites to Based on the work performed, we did WBCSD (2) recommendations as well as building sites with a total surface area of were corrected when possible to take awareness, among persons in charge prepare an inventory of substances in a not identify any material misstatements applicable legislation, such as less than 1,000 m 2 must report safety data. changes in scope and methodology into of validating and verifying data consistent and comprehensive manner; likely to call into question the fact that the French law on New Economic The main changes in the consolidated account. consistency, of the work to be and the data identifi ed by the symbol Regulations. The AREVA group was performed to ensure the reliability of group in 2007 were: The overall uncertainty on the • the reporting scope for the “employees as were prepared, for the selected entities, established in September 2001 the validations at the business unit and – integration of offi ce building sites (more measurement of total greenhouse gas of December 31” indicator of the in accordance with the above- and began instituting performance professional expert levels. than 1,000 people); emissions is less than 10%. This fi gure Sustainable Development and Continuous mentioned reporting criteria. indicators in 2002, its fi rst full year – creation of the Renewable Energies is based on AREVA group estimates The procedures relating to the Improvement department must be made of operation. business unit (three sites in India, Brazil of uncertainties by type of industrial reporting protocol for the selected data consistent with that taken into account in The indicators presented in this report and Germany, more than 80 people); and process and by type of greenhouse enabled us to make the following the reporting of the Human Resources concern the data for fi scal years 2006 – acquisition of Lesedi (one site in South gas following the “Good Practice observations: department. and 2007 submitted to the statutory Africa, AREVA NP, more than 277 people). Guidance and Uncertainty Management auditors for review. in National Greenhouse Gas Inventories” Our reporting period is the calendar Methodology of the IPCC (4) . year (January 1 to December 31). The measurement methods used for Concerning the quantifi cation of volatile Neuilly-sur-Seine and Paris-La Défense, March 19, 2008 Indicators for dosimetry data are from environmental, social and safety organic compound emissions (VOC), a 12-month period that may be indicators and the related reporting the strengthened deployment of VOC different from the calendar year. The statutory auditors, procedures are documented in an AREVA inventories at some sites resulted in a sustainable development and continuous broader accounting of emission sources, Scope Deloitte & Associés Mazars & Guérard Salustro Reydel improvement measurement and reporting explaining in part the variation in data Member of KPMG International All of the group’s worldwide operations procedure. from 2006 to 2007. are covered in this report. By “group”, we mean AREVA, its subsidiaries and all of the operational and functional entities of the group in which our interest is 50% Units whose sale was in progress and irreversible in 2007 were not or more as of December 31, 2007. included in the scope of environmental reporting. An additional Pascal Colin Jean-Luc Barlet Denis Marangé criterion was used for mining operations, i.e. the group’s operational Partner Partner Partner involvement (3) . As a result, we included data from the minority

(1) Global Reporting Initiative (www.globalreporting.org). subsidiaries Cominak (Niger) and AMC (Sudan) in the environmental, (2) World Business Council for Sustainable Development health and safety indicators. The goal is to cover the entire group. (www.wbcsd.ch). (3) An entity has operational control of the source of an impact This is not always possible, for various material reasons, particularly when it has decision-making authority for operating procedures causing those impacts or emissions, i.e. when at small sites with limited administrative resources. Eric Dugelay Philippe Arnaud the responsibility for the impacts and emissions is explicitly To assess the gaps in relation to this goal, the exhaustiveness of mentioned in the contract terms and conditions governing Partner Partner the right to operate the source involved and/or it is has a reporting is measured in percentage of affected employees. Environment & Sustainability department permit to operate that source from the administration (or The coverage rate (CR) corresponding to each indicator is provided Environment & Sustainability department its equivalent outside France). (4) Intergovernmental Panel on Climate Change (IPCC). in the summary data table (page 83 of this report). COMMENTS

80 – AREVA 2007 AREVA 2007 – 81 Reporting methodology Data veriﬁ ed in 2007 at 10 sites by the statutory auditors Salustro Reydel, member of KPMG International, Deloitte & Associés and Mazars & Guérard

2007 Data Unit Assurance 2006 2007 Corporate Front Reactors Back T&D Coverage The quantities of drainage water from In application of the plant license order, and safety indicators for 2007. These Depts. End and End rate (1) mining operations are included in the estimate of doses to the public is indicators are identifi ed by the symbols Services the indicator “volume of water taken from assessed by a mixed group of experts or in the table (page 83 of Number of sites with Number 105 115 28 24 9 54 100% the water table” and are not included called the Groupe Radioécologie this report). The type of verifi cations ISO 14001 certifi cation in the indicator “total water consumption Nord-Cotentin (GRNC). performed and the fi ndings thereon are 20,600,920 19,438,368 (excluding cooling water),” except for In its January 2007 report, the GRNC presented on pages 79-80 of this report . Volume of water consumed m³ 59,706 15,439,960 2,191,420 597,200 1,150,081 100% (excluding cooling water) the share used on site. The calculation analyzed AREVA NC’s quantifi cation of of internal and external doses is based released activity, modeling of pathways Completeness Energy consumed MWh 2,806,108 2,925,200 26,906 1,355,926 425,485 774,462 342,420 100% (excluding Eurodif) on methods developed by AREVA in in the environment, and estimates of The purpose of this report is to explain accordance with applicable regulations. doses to the public. our businesses’ main sustainable Direct emissions of Metric 1,118,137 990,836 585 597,812 54,227 103,838 234,374 100% Practical measurement methods may The GRNC considers the approaches development challenges and to provide greenhouse gases tons CO 2 differ by site; those concerning external and reported results to be consistent with an analysis of their social and equivalent doses are currently the subject of the methodology that it recommends environmental performance. Emissions of volatile kg 1,079,906 1,173,128 4,840 972,911 10,374 29,900 155,102 100% comparative analyses aimed at gradually using and that the resulting estimates The report does not enter into detail on organic compounds (VOC) bringing them into alignment, as a are correct. the local impacts of the various sites, Radiological impact of the mSv 0.009 0.009 0.009 100% function of local regulatory requirements. The radiological impact thus calculated which are addressed in specifi c reports AREVA NC La Hague site (2) The mean internal and external dose for the most affected reference group is that are gradually being published by calculation includes all monitored 0.009 mSv, or 10/1,000 th of the regulatory the sites with signifi cant environmental Total conventional waste MT 131,714 179,121 863 118,264 19,652 4,572 35,770 100% (normal and exceptional personnel, including personnel that limit of 1 mSv. Since the modeling aspects. received a non-detectable dose or includes meteorological data averaged operations) no dose at all. The internal doses used to over a period of fi ve years (1992-1997), Total individual external mSv 19,157 18,760 2 4,871 8,264 5,623 100% calculate the mean dose to the group’s AREVA NC conducted a sensitivity dose to AREVA group employees from occupational exposure analysis of the calculation based on employees over to radiation were not reviewed by actual meteorology in fi ve villages near 12 consecutive months the auditors for confi dentiality reasons. the plant. For 2007, the radiological Accident frequency rate % 4.66 3.55 0.87 3.82 2.93 4.45 3.99 99% For this indicator, the review is therefore impact thus calculated ranges from with lost time for employees limited to the sum of individual external 0.0024 to 0.014 mSv, depending on of the AREVA group doses resulting from occupational the village. These fi gures are the same exposure to radiation by the group’s order of magnitude as that calculated for Number of accidents Number 237 285 2 76 66 47 94 98% with lost time involving employees. the reference group. They are still less subcontractor personnel A method developed jointly by AREVA than 15/1,000 th of the regulatory limit. working at an AREVA and IRSN is used to calculate the group site radiological impacts of the AREVA NC Independent verifi cation Accident severity rate % 0.14 0.11 0.01 0.14 0.08 0.20 0.09 100% La Hague site: The statutory auditors Deloitte & for employees of “Methodology for calculating the impacts Associés, Mazars & Guérard and the AREVA group of liquid and gaseous releases from Salustro Reydel provided independent the AREVA NC La Hague plant on the verifi cation of reporting procedures Percentage of women % 16.9 16.7 30.2 14.3 15.9 19.5 11.5 100% engineers and managers reference populations.” for selected key environmental, social (excluding executives) Percentage of women in % 17.4 18.4 59.3 13.1 23.8 16.5 16.3 99% non-management positions

Moderate assurance Reasonable assurance (1) In % of the AREVA group’s total workforce. (2) See note on methodology on page 82 of this report for an explanation of the methods used to calculate this indicator. The other sustainable development indicators are available on the AREVA group’s website.

82 – AREVA 2007 AREVA 2007 – 83 Glossary

CENTRIFUGATION • Effective dose: sum of weighted dose ELECTRICITY TRANSMISSION FLORENCE FORUM GREENHOUSE GASES Enrichment process in which a gaseous equivalents delivered to various tissues NETWORK A consensus building and regulating Gases present in the atmosphere that mixture of isotopes is spun at very high and organs by internal and external Network for electricity transmission process in the electricity fi eld initiated by may be produced naturally or by human speed, using the centrifugal force to ir radiation. The effective dose unit is the from the power plant to the distribution the European Commission in 1998 which activity. They create a greenhouse effect, modify the composition of the mixture. sievert (Sv). network. It covers large geographical guided the establishment of a single helping to warm the earth and make it ANDRA (AGENCE NATIONALE • Lethal dose: fatal dose of nuclear or areas. The transmission network includes market for electricity. livable. But beyond a certain threshold, CO POUR LA GESTION DES DÉCHETS 2 chemical origin. high voltage and very high voltage power their build-up in the atmosphere causes Carbon dioxide, a greenhouse gas pro- FUEL ASSEMBLY RADIOACTIFS) • Maximum allowable dose: dose that lines, transformers and switchgear global warming, which interferes with duced primarily by burning fossil fuels Bundle of fuel rods fi lled with uranium or Public industrial and commercial agency must not be exceeded for a given period equipment. the climate. The main greenhouse gases with oversight by the Ministries of Indus- (coal, oil, natural gas, etc.). MOX pellets. The core of a reactor con- of time. are carbon dioxide (CO 2), nitrous oxide try, Research and the Environment. Andra END-OF-LIFE-CYCLE OBLIGATIONS tains from 100 to 200 fuel assemblies, CORE (N 2O), methane (CH 4), hydrofl uorocar- operates independently of waste genera- DOSIMETRY Term covering all stages following the depending on the reactor type. Area in a nuclear fi ssion reactor com- bons (HFC), sulfur hexafl uoride (SF 6) tors. Formed in 1991, the agency has An assessment or measurement method shutdown of a nuclear or mining facility prising the nuclear fuel and arranged to FUEL CYCLE and perfl uorocarbons (PFC). three areas of responsibility: used to determine the radiation dose at the end of its operating life, from fi nal foster the fi ssion chain reaction. The combination of industrial operations • an industrial mission, by which the absorbed by a substance or an individual. closure to the removal of radioactivity at GRI (GLOBAL REPORTING INITIATIVE) involving nuclear fuel. These operations Agency provides for the management, DGSNR (DIRECTION GÉNÉRALE the site, including physical dismantling Launched in late 1997 by the Coalition for ECO-DESIGN include uranium ore mining and process- operation and monitoring of radioactive DE LA SÛRETÉ NUCLÉAIRE and decontamination of all non-reusable Environmentally Responsible Economies ET DE LA RADIOPROTECTION) Refers to the integration of the environment ing, uranium conversion and enrichment, waste disposal centers, designs and facilities and equipment. (CERES), an NGO, in partnership with French government agency reporting to into the design of goods and services. All fuel fabrication, used fuel treatment, recy- builds new centers for waste that is not the United Nations Environment Program, the Ministers of Industry, the Environment products affect the environment at one ENERGY MARKET cling of recovered fi ssile materials, and acceptable in existing facilities, and the Global Reporting Initiative is actively and Health. Its specifi c functions are to point or another in their life cycle. The goal MANAGEMENT SYSTEM waste management. The fuel cycle is said defi nes radioactive waste packaging, supported by member companies, NGOs, defi ne and implement policy in the fi elds of eco-design is to reduce those impacts Management software for energy mar- to be “closed” when it includes used fuel acceptance and disposal specifi cations accounting organizations, labor associa- of nuclear safety (civilian applications) while preserving, or indeed improving, kets that allows power generators and treatment and recycling of fi ssile materi- in accordance with nuclear safety rules; tions and other interested parties around and radiation protection and, in particular, product utility. In the eco-design process, distributors to manage their commercial als recovered by such treatment. The fuel • a research mission, by which Andra par- the world. The GRI developed and to verify safety-related measures taken, environmental parameters are added to relations more effectively. The software cycle is said to be “open” or “once- ticipates in and contributes to research disseminated guidelines that provide contemplated or implemented by opera- other design parameters, such as technical provides strategic planning; deal con- through” when fuel is disposed of after it programs pertaining to the long-term a framework and a standard format for tors in the nuclear sector, and to monitor feasibility, cost effectiveness, and customer clusion, risk management and optimum has been used in the reactor. management of radioactive waste, in reporting quantitatively and qualitatively liquid and gaseous effl uent and waste requirements. processing; and customer account particular in cooperation with the French on corporate performance in the three from licensed nuclear facilities. management. GASEOUS DIFFUSION Atomic Energy Commission (CEA); and ECO-EFFICIENCY Process for separating molecular species areas of sustainable development. • an information mission, in particular DISPOSAL OF RADIOACTIVE WASTE ENRICHMENT When a company wants to reduce its en- in gaseous form that uses the difference in HALF-LIFE through the development of a register of (SEE ALSO STORAGE) Process by which uranium’s content of vironmental impacts as well as its costs, the velocity of these molecules, due to The time it takes for half of the atoms all radioactive waste. Radioactive waste management operation fi ssile isotopes is increased. Natural it initiates an eco-effi ciency process. their different mass and dimensions, and contained in a given quantity of radioac- consisting of disposing of packaged waste uranium consists of 0.7 % 235 U (fi ssile This process involves an analysis of the thus the different rates at which they pass tive substance to disintegrate naturally. BIOFUEL in a specially designed area that will ensure 238 environmental impacts of its products, isotope) and 99.3% U (non-fi ssile through a semi-permeable membrane. Liquid fuel produced by the conversion safety without time limitation. The radioactivity of the substance is thus processes and services. isotope), as well as very small quantities This is how the uranium hexafl uorides of vegetable matter produced by agri- 234 235 divided in half. The radioactive half-life DOSE of U. The proportion of U is 235 UF and 238 UF are separated, causing culture (beets, wheat, corn, rape seeds, ELECTRICITY DISTRIBUTION 6 6 varies with the characteristics of each Unit of measure used to characterize increased to around 3-4% to make it 235 sunfl ower seeds, potatoes, etc.). Biofuels NETWORK enrichment in U for nuclear fuel. radioelement: human exposure to radiation. The term usable in a pressurized water reactor. are associated with a source of renewable Network that delivers electricity locally – 110 minutes for argon-41; “dose” is often erroneously used in place GOVERNANCE energy. to end-users: industries, businesses, ENVIRONMENTAL MANAGEMENT – 8 days for iodine-131; and of “dose equivalent.” Designates the organization of authority service providers, residences, etc. Elec- SYSTEM (EMS) – 4.5 billion years for uranium-238. BIOTOPE • Absorbed dose: amount of energy within a company (corporate gover- tricity is distributed at medium voltage An environmental management system is A biological environment presenting ab sorbed by living or inert matter exposed nance) and seeks the right mix of man- IAEA (INTERNATIONAL ATOMIC (12-24,000 V) and gradually reduced to a systematic process for identifying and agement bodies, oversight bodies and ENERGY AGENCY) stable habitat conditions to a set of plant to radiation. It is expressed in grays (Gy). improving environmental performance low voltage at the point of end use (230 V The IAEA is an autonomous organiza- and/or animal species. • Dose equivalent: the same absorbed shareholders. In terms of sustainable in Europe, 110 V in the United States). that may culminate in certifi cation. dose may have different effects on a development, good governance presup- tion affi liated with the United Nations. Its BLACKOUT living organism, depending on the type EPR poses transparency, dialogue with role is to increase the contribution of ci- A widespread power outage that occurs of radiation involved (X-rays or alpha, New generation pressurized water nuclear stakeholders, and addressing stake- vilian atomic energy to international after a purely local power outage and beta or gamma radiation). A dose multi- reactor with approximately 1,600 MWe of holder expectations. It means corporate peace and prosperity, and to ensure that affects the whole grid, cutting off electric- plier, or “quality factor,” is used to take power. commitment to guiding principles, which it is used for peaceful purposes. ity to an entire region. these differences into account in calculat- give rise to internal charters. ing the dose, giving a “dose equivalent.”

84 – AREVA 2007 AREVA 2007 – 85 Glossary

IEA (INTERNATIONAL ENERGY ISO STANDARDS OECD (ORGANIZATION FOR RADIATION PROTECTION • emission of electromagnetic waves, SEVESO, SEVESO REGULATIONS AGENCY) International standards. The ISO 9000 ECONOMIC COOPERATION AND Term commonly used to designate the known as “gamma radiation”: European directive aimed at preventing The IEA is a multilateral organization standards set organizational and man- DEVELOPMENT) branch of nuclear physics concerned with – electromagnetic radiation similar to light major accidents involving hazardous that coordinates the energy policies of agement system requirements to dem- International organization formed of the protecting people from ionizing radiation and X rays. Thick, compact materials materials and requiring in particular the its 27 member nations. It contributes to onstrate that a product or service meets leading industrialized nations, including (also referred to as “health physics”). By (concrete, lead) are needed to stop it. development of emergency response/ the security of energy supply, economic customer quality requirements. The ISO the European Union, whose purpose is extension, the term “radiation protection” All of these different types of radiation management plans, public information growth and environmental protection. It 14000 standards set requirements for to help member governments develop covers all of the health measures taken to are grouped together under the gen- and urban zoning near high-risk indus- was established in 1974 as an indepen- environmental management organiza- economic and social policies and to protect the health of members of the pub- eral heading of “ionizing radiation.” trial sites. dent branch of the Organization for tions and systems designed to prevent encourage and harmonize member lic and workers from such radiation and The radioactivity of an isolated quantity Economic Cooperation and Develop- pollution and reduce the environmental country support to developing countries. to comply with laws and regulations. of an element gradually decreases over SITES WITH SIGNIFICANT ENVIRONMENTAL ASPECTS (SEA) ment (OECD). effects of an activity. time as the unstable nuclei dissipate. PACKAGING RADIOACTIVE WASTE The half-life is the time required for the In AREVA’s frame of reference, sites INES (INTERNATIONAL NUCLEAR Fuel packaging: special packaging for Non-reusable by-products of the nucle- KYOTO PROTOCOL radioactivity of a radioactive substance with signifi cant environmental aspects EVENT SCALE) used fuel to prepare it either for interim ar industry. The four classes of waste The Earth Summit held in Rio in 1992 to decrease by half. include our nuclear sites, sites with fa- An international scale used to defi ne the signaled global awareness of the risks storage or for fi nal disposal. are based on radioactivity levels: cilities representing major man-made severity of an event occurring in a nu- of climate change. Waste packaging: operation consisting • very low-level waste (VLLW); REACTOR, NUCLEAR REACTOR risk per Seveso regulations, mining clear facility. In 1997, the Kyoto Protocol set limits for of converting waste into a form suitable • low-level waste (LLW) from operations System in which controlled nuclear reac- sites, plants with facilities subject to signatory countries and penalties for for transport and/or storage and/or fi nal and maintenance, such as gloves, tions are conducted, producing heat that public inquiry, and industrial or service INTERCONNECTION polluting countries that emit green- disposal. booties, face masks, etc., which make is used to make steam to operate a tur- sites whose consumption, releases and Connection between two national pow- house gases. • Very low-level radioactive waste (vinyl, up 90% of the waste sent to licensed bine, which drives an electric generator. pollution carry signifi cant weight in the er grids or, in some cases, regional cleaning rags, etc.) is placed in steel disposal facilities; Different reactor types use different fuel, group’s environmental accounting. power grids, which are generally syn- MOX (MIXED OXIDES) drums. • medium-level waste (MLW), such as dis- moderators (to control the reaction) and chronous (50 or 60 Hz). Direct current is A blend of uranium and plutonium • Low- and medium-level waste is fi rst mantled production equipment, measure- coolants (to remove heat used to gener- STORAGE needed to connect two asynchronous (SEE ALSO DISPOSAL) oxides used to fabricate certain types of compacted to reduce its volume as ment instrumentation, etc. (8%); and ate power). The pressurized water reactor grids, which is complex and costly to Temporary repository for radioactive nuclear fuel. much as possible, then encapsulated in • high-level waste (HLW), mainly fi ssion (PWR) currently used by EDF uses slight- implement. waste. a special material (concrete, bitumen or products that have been separated ly enriched uranium fuel and pressurized NGO (NON-GOVERNMENTAL resin) to form solid blocks capable of light water as the moderator and coolant. IPCC (INTERGOVERNMENTAL ORGANIZATION) during used fuel treatment and recy- STORAGE POOL withstanding environmental conditions. PANEL ON CLIMATE CHANGE) Non-profi t association or group that is cling operations (2%). • Boiling Water Reactor (BWR): nuclear Pool in which used fuel is stored after • For high-level waste, a glass matrix is Multilateral organization established in unaffi liated with States and whose pur- reactor in which boiling pressurized removal from the reactor to allow the as- used (vitrifi cation process). The vitri- RADIOACTIVITY 1988 by the United Nations Environ- pose is to promote and defend collec- water is used to remove the heat from semblies to lose most of their radioac- fi ed waste is placed in stainless steel Emission by a chemical element of ment Program and the World Meteoro- tive interests. the reactor. tivity through radioactive decay. The canisters. electromagnetic waves and/or particles logical Organization to assess scientifi c • Pressurized Water Reactor (PWR): caused by a change in the confi gura- water shields personnel from the radia- data on climate change and report on NUCLEAR FUEL nuclear reactor moderated and cooled PLUTONIUM tion of its nucleus. The emission can tion emitted by the used fuel. this subject. A nuclide that undergoes fi ssion in a re- by light water maintained in the liquid Chemical element with the atomic num- be spontaneous (natural radioactivity actor, thereby releasing energy. By ex- state in the core through appropriate SULFUR HEXAFLUORIDE (SF ) ber 94 and conventional symbol Pu. Plu- of certain unstable atoms) or induced 6 IRSN (INSTITUT DE tension, a product containing fi ssile ma- pressurization under normal operating Industrial gas classifi ed as a green- tonium -239, a fi ssile isotope, is produced (artifi cial radioactivity). RADIOPROTECTION terial which supplies energy in the conditions. house gas with a high global warming ET DE SÛRETÉ NUCLÉAIRE) in nuclear reactors from uranium -238. Radioactivity has several forms: reactor core by maintaining the chain potential (22,200 times that of CO 2). Organization responsible for conducting • emission of alpha particles (combi- RENEWABLE ENERGIES reaction. POWER GRID MANAGEMENT SYSTEM Widely used in the metallurgical and research and assessments in the fi elds nation of 2 protons and 2 neutrons), Historically, the fi rst energy sources Systems to optimize electricity fl ows, electronics industry as insulation for of nuclear safety, human safety and called “alpha radiation”: used by man were renewable. Supplied NUCLEAR SAFETY prevent equipment overloads, limit losses electrical equipment. – the particles making up alpha radia- by the sun, the wind, the earth’s heat environmental protection, and nuclear (SEE ALSO SAFETY ANALYSIS and analyze outage risks. materials transportation safety. The REPORT) tion are helium 4 nuclei that are highly and water falls, these energies are, by TRANSFORMER STATION IRSN provides technical support to the In the nuclear industry, nuclear safety PRIMARY ENERGY – FINAL ENERGY ionizing but not very penetrating. A defi nition, naturally replenished after (SUBSTATION) DGSNR. encompasses all of the measures taken Primary energy consists of commodities single sheet of paper stops them; they have been consumed, and are Interface between sections of a power at each stage of the design, construc- such as oil and natural gas, which must • emission of electrons, known as “beta therefore inexhaustible, at least over network that operate at different volt- tion, operation and fi nal shutdown of a be converted before they can be used, as radiation”: very large periods of time. ages. In the substation, voltage is trans- facility to ensure operational safety, pre- opposed to fi nal energy, which is ready – the particles making up beta radiation There are six types of renewable energy: formed and electricity supply fl ows are vent incidents, and limit their impact. to be consumed. Final energy is a little are electrons with a negative or positive solar energy, wind energy, hydropower, controlled. more than one-third of primary energy. charge. They can be stopped by a few geothermal energy, biomass and biogas. The difference comes from output loss- meters of air or a single sheet of alumi- es in the energy system. num foil;

86 – AREVA 2007 AREVA 2007 – 87 Glossary To learn more

TREATMENT VOC (VOLATILE ORGANIC ELECTRIC POWER RESEARCH SOCIÉTÉ FRANÇAISE DE L’ÉNERGIE Treatment of used fuel to extract fi ssile COMPOUND) INSTITUTE (EPRI) NUCLÉAIRE (SFEN) and fertile materials (uranium and pluto- Chemical compound, such as gasoline EPRI is a non-profi t energy research This association organizes exhibits for nium) for recycling purposes and to or acetone, that evaporates at ambient consortium. It was founded in 1973 the general public and regional, national package the different types of waste temperature. When exposed to sunlight, to benefi t utility members and their and international meetings on various into a form suitable for disposal. Fission VOC reacts with other gases in the WEBSITES customers. Its mission is to provide nuclear topics. products and transuranics are vitrifi ed. atmosphere to form ozone and other science and technology-based solutions www.sfen.org photo-oxidants. AGENCE NATIONALE POUR of indispensable value to global energy LA GESTION DES DÉCHETS UNDP (UNITED NATIONS customers by managing a far-reaching WORLD BUSINESS COUNCIL WBCSD (WORLD BUSINESS RADIOACTIFS (ANDRA) DEVELOPMENT PROGRAM) program of scientifi c research, technol- FOR SUSTAINABLE DEVELOPMENT Public industrial and commercial The UNDP is the United Nations’ world- COUNCIL FOR SUSTAINABLE (WBCSD) DEVELOPMENT) ogy development and product imple- wide development network. Its role is to organization responsible for radioactive The WBCSD has 180 industrial members Established in 1995 at the initiative of mentation. help developing countries by providing waste disposal in France. Under the committed to sustainable development. the International Chamber of Com- www.epri.com advice and advocating their cause to government’s oversight, ANDRA is merce, the WBCSD brings together www.wbcsd.org secure grants. charged with verifying waste quality; some 180 international companies from designing, siting, building and managing FIEEC Federation of electrical, electronic and WORLD ENERGY COUNCIL (WEC) URANIUM 35 countries and more than 20 business disposal centers, where waste is placed communication industries. Its members The 80-year-old World Energy Council Chemical element with atomic number sectors. It is the international opinion based on its characteristics. is the world’s foremost multi-energy 92 and atomic symbol U, which has leader on sustainable development consist of 21 trade associations and 1,100 www.andra.fr organization today. The WEC has three natural isotopes: 234 U, 235 U and issues. high-tech companies in the electrical, electronic and communication sectors. committees in more than 100 countries, 238 U. The only naturally occurring fi ssile ASSOCIATION OF POWER WNA (WORLD NUCLEAR including the leading energy producing nuclide is 235 U, a quality that is exploited EXCHANGES It represents these companies before ASSOCIATION) and consuming countries, whether for as a source of energy. APEx was formed to facilitate the national and European bodies. World industrial organization whose coal, oil, natural gas, nuclear, hydro or development and communication of www.fi eec.fr purpose is to promote the peaceful renewable energies. URANIUM HEXAFLUORIDE (UF 6) ideas and practices in the operation of The uranium contained in nuclear fuel uses of nuclear power as an energy re- global competitive electricity markets. GIMELEC www.worldenergy.org source in tune with sustainable devel- must be enriched in fi ssile 235 U. Enrich- French industry association for electrical opment imperatives. www.theapex.org ment is achieved by gaseous diffusion equipment, automation and related WORLD NUCLEAR ASSOCIATION or by ultracentrifugation. The uranium is International industrial organization ZIRCONIUM COMITÉ 21 services. fi rst converted into a gas called uranium whose purpose is to promote the Transition metal, like titanium, discov- French association established in 1994 to www.gimelec.fr hexafl uoride for this purpose. peaceful uses of nuclear power as an ered in 1824 by Berzélius. Zirconium has promote implementation of commitments INTERNATIONAL ATOMIC ENERGY energy resource in tune with sustainable USED FUEL the atomic number 40 in the periodic made at the Rio Earth Summit in Brazil. AGENCY (IAEA) development imperatives. The WNA is Nuclear fuel that has been used in a table of the elements. It is the alloy base www.comite21.org The IAEA is an autonomous organization particularly focused on nuclear power reactor. in the cladding of light water reactor fuel affi liated with the United Nations. Its role generation and on the nuclear fuel elements, chosen for its mechanical COMMISSARIAT À L’ÉNERGIE cycle. VITRIFICATION strength and corrosion resistance in high ATOMIQUE (CEA) is to increase the contribution of civilian Process used to solidify concentrated temperature water combined with its The CEA is a key player in research, atomic energy to international peace www.world-nuclear.org solutions of fi ssion products and trans- very low thermal neutron absorption. development and innovation in three and prosperity, and to ensure that it is uranic elements separated during used fi elds: energy, information and health used for peaceful purposes. fuel treatment by mixing them with a technologies, and defense. Its two main www.iaea.org glass matrix at high temperature. objectives are to become the European leader in technology research and to LARADIOACTIVITE.COM ensure sustainable nuclear deterrence. This site explains what radioactivity is in simple terms, from its discovery to its www.cea.fr many applications in science, industry, medicine and daily life. www.laradioactivite.com

88 – AREVA 2007 AREVA 2007 – 89 To learn more

NUCLEAR ENERGY IN 110 QUESTIONS ONE PLANET FOR ALL Direction générale de l’énergie et Collective work sponsored by the World des matières premières (DGEMP) Energy Council, 2003, 174 pages, available (currently being updated; viewable at from the French Energy Council, CME, www.industrie.gouv.fr ) 3, rue Treilhard, 75008 Paris, France. BOOKS This book aims to offer summary-level It shows the linkages with everything in information on nuclear energy in simple our environment and advances the idea ALL ABOUT NUCLEAR ENERGY, terms. The status of nuclear power in that energy solutions for humanity cannot FROM ATOM TO ZIRCONIUM France and across the globe is described be discussed without awareness of how Available in May 2008 at: in 12 short chapters, which serve as energy is used and greater emphasis on www.areva.com an introduction to a series of questions the social and sustainable development Understanding everything about nuclear refl ecting concerns by average citizens. aspects. energy: that’s what this book sets out to do. It provides an overview of energy and elec- NUCLEAR ENERGY TODAY WORLD ATLAS OF SUSTAINABLE DEVELOPMENT tricity and discusses nuclear reactors, the Nuclear Energy Agency of the OECD, Éditions Autrement – 77, rue du Faubourg- fuel cycle, waste, nuclear safety, radiation 2003 – 120 pages, available from Saint-Antoine, 75011 Paris, France. protection and public information. This new the NEA, Le Seine-Saint-Germain, Author Anne-Marie Sacquet, General edition, put together by a group of AREVA 12, boulevard des Îles, Manager of Comité 21, presents the employees, was completely revised and 92130 Issy-les-Moulineaux, France. world’s major sustainable development new topics were added, such as facility This book provides authoritative and themes in this atlas. dismantling, non-proliferation and nuclear factual replies to questions raised fusion. Available in French and English, in about nuclear energy today. Written hard copy and DVD-Rom. primarily to inform policy makers, it will also interest industry leaders, academ- LESSONS FROM MARIE CURIE ics, journalists and members of the By Marie Curie, Isabelle Chavannes, EDP public. Sciences, 2003. This unpublished book contains the les- NUCLEAR POWER sons in elementary physics that Marie “Comprendre l’avenir” collection, Curie gave in 1907 to her daughter Irène Éditions Hirlé and to the children of her colleagues as 131, rue Boecklin, part of a “teaching cooperative.” Marie 67000 Strasbourg, France. Curie put together the ten lessons her- This book is for everyone, from teenagers self for children of around ten years old: to professionals in nuclear power, electrici- discerning the air void, how water makes ty and energy. With its clear, understand- it to the faucet, the Archimedes principle, able approach, it’s a good introduction to and others. this industry. From its fi rst applications to power generation, this book explains the technical as well as economic and political aspects of nuclear power. It contains a long discussion of the long-term outlook for nuclear technologies (fast reactors, fusion). The long-term applications of nuclear energy beyond the generation of electricity are also discussed. AREVA Business corporation (société anonyme) with an Executive Board and a Supervisory Board capitalized at €1,346,822,638 – RCS Paris B 712 054 923 Registered offi ce: 33, rue La Fayette – 75009 Paris – France – Tel.: +33 1 34 96 00 00 – Fax: +33 1 34 96 00 01 – www.areva.com

Published by the Corporate Communications Department – June 2008

Design and production: Photos and illustrations: AFP / E. Feferberg, AREVA rights reserved, Black Box Images, P. Bourdon, Bureau de Création, Dikdak, EDF / A. Morin, H5, Image & Process, P. Lesage, G. Liminet, J.-C. Marmara , C. Moreau, Multibrid, N. Petitot, P. Schaff, J.-M. Taillat, S. Toubon, P. Troyanowski, M. Wendzinski.

Printed on paper from sustainably managed forests. 90 – AREVA 2007